TEMPE, AZ — Economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 102nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued Friday by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:
- The November PMI registered 58.2 percent, a decrease of 0.5 percentage point from the October reading of 58.7 percent.
- The New Orders Index registered 64 percent, an increase of 0.6 percentage point from the October reading of 63.4 percent.
- The Production Index registered 63.9 percent, a 2.9 percentage point increase compared to the October reading of 61 percent.
- The Employment Index registered 59.7 percent, a decrease of 0.1 percentage point from the October reading of 59.8 percent.
- The Supplier Deliveries Index registered 56.5 percent, a 4.9 percentage point decrease from the October reading of 61.4 percent.
- The Inventories Index registered 47 percent, a decrease of 1 percentage point from the October reading of 48 percent.
- The Prices Index registered 65.5 percent in November, a 3 percentage point decrease from the October level of 68.5, indicating higher raw materials prices for the 21st consecutive month.
Comments from the panel reflect expanding business conditions, with New Orders and Production leading gains, employment expanding at a slower rate, order backlogs stable and expanding, and export orders all continuing to grow in November. Supplier deliveries continued to slow (improving), but at slower rates, and inventories continued to contract during the period. Price increases continued, but at a slower rate. The Customers’ Inventories Index improved but remains at low levels.
Of the 18 manufacturing industries, 14 reported growth in November, in the following order: Paper Products; Machinery; Transportation Equipment; Computer & Electronic Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; Furniture & Related Products; Fabricated Metal Products; Miscellaneous Manufacturing; and Primary Metals. Two industries reported contraction during the period: Wood Products; and Petroleum & Coal Products.
|MANUFACTURING AT A GLANCE
|Customers' Inventories||45.5||43.5||+2.0||Too Low||Slower||5|
|Backlog of Orders||55.0||55.0||0.0||Growing||Same||10|
|New Export Orders||56.0||56.5||-0.5||Growing||Slower||21|
Manufacturing ISM Report On Business data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.
|Nov 2017||58.2||May 2017||54.9|
|Oct 2017||58.7||Apr 2017||54.8|
|Sep 2017||60.8||Mar 2017||57.2|
|Aug 2017||58.8||Feb 2017||57.7|
|Jul 2017||56.3||Jan 2017||56.0|
|Jun 2017||57.8||Dec 2016||54.5|
|Average for 2017 – 57.4
Average for 12 months – 57.1
High – 60.8
Low – 54.5