PMI Shows Manufacturing Expansion Slowed Further In November

The latest PMI shows manufacturing expansion fell half a point in November after falling 2.1 points in October. Still, the past four months have have been the best four months of 2017 for the PMI reading.

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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
November 2017


Index
Series
Index
Nov
Series
Index
Oct
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 58.2 58.7 -0.5 Growing Slower 15
New Orders 64.0 63.4 +0.6 Growing Faster 15
Production 63.9 61.0 +2.9 Growing Faster 15
Employment 59.7 59.8 -0.1 Growing Slower 14
Supplier Deliveries 56.5 61.4 -4.9 Slowing Slower 19
Inventories 47.0 48.0 -1.0 Contracting Faster 2
Customers' Inventories 45.5 43.5 +2.0 Too Low Slower 5
Prices 65.5 68.5 -3.0 Increasing Slower 21
Backlog of Orders 55.0 55.0 0.0 Growing Same 10
New Export Orders 56.0 56.5 -0.5 Growing Slower 21
Imports 54.5 54.0 +0.5 Growing Faster 10
OVERALL ECONOMY Growing Slower 102
Manufacturing Sector Growing Slower 15

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.

Month PMI   Month PMI
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

source: tradingeconomics.com
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