While economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 102nd consecutive month, supplier deliveries slowed down, according to a report issued by ISM on Dec. 1.
“Supplier deliveries continued to slow (improving), but at slower rates, and inventories continued to contract during the period,” says Timothy Fiore, chair of ISM's Manufacturing Business Survey Committee. The Supplier Deliveries Index registered 56.5%, a 4.9 percentage point decrease from the October reading of 61.4%.
While the November PMI registered 58.2%, indicating growth, it is still a decrease of 0.5 percentage point from the October reading of 58.7%
Other survey highlights include:
- The New Orders Index registered 64%, an increase of 0.6 percentage point from the October reading of 63.4%.
- The Production Index registered 63.9%, a 2.9 percentage point increase compared to the October reading of 61%.
- The Employment Index registered 59.7%, a decrease of 0.1 percentage point from the October reading of 59.8%.
- The Inventories Index registered 47%, a decrease of 1 percentage point from the October reading of 48%.
- The Prices Index registered 65.5% in November, a 3 percentage point decrease from the October level of 68.5%, indicating higher raw materials prices for the 21st consecutive month.
Of the 18 manufacturing industries included in the index, 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.