December 2, 2014
Manufacturing activity expands for 18th consecutive month
U.S.--Economic activity in the manufacturing sector expanded in November for the 18th consecutive month, and the overall economy grew for the 66th consecutive month, say the nation’s supply executives in the latest ‘Manufacturing ISM Report On Business’.
The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "The November PMI registered 58.7 per cent, a decrease of 0.3 percentage point from October’s reading of 59 per cent, indicating continued expansion in manufacturing. The ‘New Orders Index’ registered 66 per cent, an increase of 0.2 percentage points from the reading of 65.8 per cent in October. The ‘Production Index’ registered 64.4 per cent, 0.4 percentage point below the October reading of 64.8 per cent. The ‘Employment Index’ grew for the 17th consecutive month, registering 54.9 per cent, a decrease of 0.6 percentage point below the October reading of 55.5 per cent. Inventories of raw materials registered 51.5 per cent, a decrease of one percentage point from the October reading of 52.5 per cent. The ‘Prices Index’ registered 44.5 per cent, down nine percentage points from the October reading of 53.5 per cent, indicating lower raw materials prices in November relative to October. Comments from the panel are upbeat about strong demand and new orders, with some expressing concerns about West Coast port slowdowns and the threat of a potential dock strike."
Of the 18 manufacturing industries, 14 are reporting growth in November in the following order: Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Furniture & Related Products; Fabricated Metal Products; Textile Mills; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Paper Products; Plastics & Rubber Products; Machinery; Transportation Equipment; Nonmetallic Mineral Products; Petroleum & Coal Products; and Primary Metals.
The only industry reporting contraction in November is Apparel, Leather & Allied Products.
To read the full ISM November 2014 ISM Report on Business, click here.