2nd December 2023 – (Washington) The U.S. manufacturing sector continued to contract in November, marking the 13th consecutive month of decline, according to a report released by the Institute for Supply Management (ISM) on Friday.
The U.S. Manufacturing Purchasing Managers’ Index (PMI) remained at 46.7 per cent in November, unchanged from the previous month’s figure. A reading below 50 per cent indicates contraction in the manufacturing sector.
Timothy Fiore, chair of the ISM’s manufacturing business survey committee, highlighted that companies are still adjusting their outputs due to ongoing softness in orders. He noted a decline in demand as a contributing factor to the contraction.
The New Orders Index contracted in November, albeit at a slower rate than in the previous month. The New Export Orders Index experienced a further decline, moving deeper into contraction territory. Additionally, the Backlog of Orders Index fell below 40 per cent, indicating a strong contraction in this area.
On the price front, the Prices Index rose to 49.9 per cent, an increase of 4.8 percentage points compared to October. This indicates a near-stagnation in prices. The Employment Index, on the other hand, declined by 1 percentage point to 45.8 per cent, suggesting a decrease in employment within the sector.