Economic Growth Tempered By Manufacturing Drop

While the overall economy registered its 61st consecutive month of growth in November 2006, manufacturing ended its 41-month run by declining in the same period, according to the Institute for Supply Management (ISM). The ISM’s Manufacturing Report on Business registered 49.5% in November (scores above 50% indicate growth). The last time the index registered below 50% was in April 2003 when it hit 46.5%.

New export orders continued to grow in November, but at a slower pace than October. Imports were also growing at a slower pace.

ISM member firms reported prices were on the rise, particularly for copper products, corn, natural gas, nickel and zinc.

On a rolling 12-month average, the ISM’s manufacturing index registered 54.2%. Its high point in the period was 57.3% in April 2006 and its low point was in November (49.5%). Commenting on the relationship between the index and the U.S. economy, Norbert Ore, ISM chair, said the average for the 11 months of 2006 (54.1%) corresponds to a 4.1% increase in the real gross domestic product.

TAGS: Archive
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish