ISM reported that the November Manufacturing PMI was 49%, 1.2 percentage points lower than the recorded 50.2% in October. As any number below 50% represents contraction, this is the first month the manufacturing sector has contracted since May 2020, breaking the industry’s streak of 29 consecutive months of growth.
Here is the breakdown of the November PMI:
- New Orders Index: 47.2%, a 2 percentage point decrease month-over-month
- Production Index: 51.5%, a 0.8 percentage point decrease month-over-month
- Prices Index: 43%, a 3.6 percentage point decrease month-over-month
- Backlog of Orders Index: 40%, a 5.3 percentage point decrease month-over-month
- Employment Index: 48.4%, a 1.6 percentage point decrease month-over-month
- Supplier Deliveries Index: 47.2%, a 0.4 percentage point increase month-over-month
- Inventories Index: 50.9%, a 1.6 percentage point decrease month-over-month
- New Export Orders Index: 48.4%, a 1.9 percentage point increase month-over-month
- Imports Index: 46.6%, a 4.2 percentage point decrease month-over-month
“The U.S. manufacturing sector dipped into contraction, with the Manufacturing PMI at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous six months, the November composite index reading reflects companies’ preparing for future lower output,” Timothy R. Fiore, ISM Chairman, said.
October saw growth in six manufacturing industries, including:
- Apparel, Leather & Allied Products
- Nonmetallic Mineral Products
- Primary Metals
- Miscellaneous Manufacturing
- Petroleum & Coal Products
- Transportation Equipment
Printing & Related Support Activities, Wood Products, Paper Products, Textile Mills, Fabricated Metal Products, Furniture & Related Products, Chemical Products, Plastics & Rubber Products, Computer & Electronic Products, Food, Beverage & Tobacco Products, Machinery and Electrical Equipment, Appliances & Components all reported a decrease in November compared to October.