Index Shows U.S. Manufacturing Contracted in November
12/01/2015 - The overall U.S. economy grew during November, but the manufacturing sector contracted for the first time in three years, according to the Institute for Supply Management’s monthly Report on Business.
The institute’s November Purchasing Managers Index recorded a score of 48.6 percent, down from 50.1 percent in October. A reading above 50 percent indicates that the manufacturing economy is generally expanding; a score below 50 percent indicates that it is generally contracting.
The institute’s monthly survey indicated that 10 of 18 manufacturing industries reported contraction in November, with lower new orders, production and raw materials inventories accounting for the overall softness in November.
Respondents said that while automotive manufacturing remain strong, the downturn in the Chinese and European markets are affecting the machinery business. Meanwhile, the oil and gas industry is coming to understand that today’s low prices are a new reality and therefore are looking for them to remain at those levels for some time.
The institute’s monthly survey indicated that 10 of 18 manufacturing industries reported contraction in November, with lower new orders, production and raw materials inventories accounting for the overall softness in November.
Respondents said that while automotive manufacturing remain strong, the downturn in the Chinese and European markets are affecting the machinery business. Meanwhile, the oil and gas industry is coming to understand that today’s low prices are a new reality and therefore are looking for them to remain at those levels for some time.
