Monday, December 1, 2014

ISM Manufacturing Index Dips in November, But Still Expanding

The ISM manufacturing index dipped 0.3 percentage points to 58.7 in November. Index readings above 50 indicate expansion in the manufacturing economy. As of November, the index has been expanding for 18 consecutive months, albeit at a slower pace. Of the 18 manufacturing industries indexed, 14 reported growth in November.

The New Orders Index rose 0.2 points to 66.0, however the Inventory Index decreased 1.0 point to 51.5. As a result, the gap between New Orders and Inventories—a proxy for future production—widened to 14.5 points.

The Employment Index declined 0.6 points to 54.9. This is the 17th consecutive quarter of growth in employment. Eleven of the 18 manufacturing industries indexed reported growth in employment. However, three industries—apparel, leather & allied products, computer & electronic products and transportation equipment—posted declines.

Exports recorded the largest increase, rising 3.5 points to 55.0, as the level of exports continued to grow for the 24th consecutive month. Imports also increased, growing 1.5 points to 54.5.

Prices, the only indicator to dip below 50, dropped 9 percentage points to 44.5. This is the first time since July 2013 that the index is reporting a decrease in the price of raw materials.

Read the ISM release.

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