Economic activity in the manufacturing sector expanded for the 28th consecutive month, and the overall economy grew for the 30th straight month in November, according to the Manufacturing Institute for Supply Management’s Report on Business. The Petroleum and Coal Products industry reported the third highest growth in November out of 18 industries.
The PMI registered 52.7 percent, an increase of 1.9 percentage points compared to October and the 30th consecutive month of growth. A reading above 50 percent indicates that the manufacturing economy is growing, and a reading in excess of 42.5 percent over a period of time indicates an expansion of the overall economy.
The New Orders index registered 56.7 percent, more than 4 percentage points higher than October and the second consecutive month of growth. The Petroleum and Coal Products industry reported the third highest growth in new orders out of five industries.
The Production Index had its third straight month of growth with a reading of 56.6 percent, more than 6 percentage points higher than October. The Petroleum and Coal Products industry reported the second highest growth in production for November out of seven industries.
The Employment Index registered 51.8 percent, just under 2 percentage points lower than October’s reading and the 26th consecutive month it has been above 50 percent. The Petroleum and Coal Products industry reported the sixth highest decrease in employment out of eight industries for the month of November.
The delivery performance of suppliers to manufacturing organizations was faster in November as the Supplier Deliveries Index registered 49.9 percent. November is the first month that supplier deliveries have been faster than the previous month since May 2009, when the index also registered 49.9 percent. The Petroleum and Coal Products industry reported the slowest supplier deliveries in November out of six industries.
The Inventories Index registered 48.3 percent, more than 1 percentage point higher than October.
Respondents believe their customers’ inventories are unchanged from October as this month’s index registered 50 percent, more than 6 percentage points higher than October and the first month the index was not below 50 percent since March 2009. The Petroleum and Coal Products Industry reported the third lowest customer inventories out of eight industries.
The Prices Index registered 45 percent in November, 4 percentage points higher than October’s reading and the second straight month of contraction in the index. In November, 19 percent of respondents reported paying higher prices, 29 percent reported paying lower prices and 52 percent said they paid the same prices as in October. The Petroleum and Coal Products industry reported paying the fifth-lowest prices on average out of 10 industries.
Of the 86 percent of respondents who reported a backlog of orders, 15 percent of them reported greater backlogs, 25 percent reported smaller backlogs and 60 percent reported no change from October. The Backlog of Orders Index registered 45 percent in November, more than 2 percentage points lower than October. Out of 10 industries reporting a decrease in order backlogs in November, the Petroleum and Coal Products industry reported the eighth biggest decrease in order backlogs.
The New Export Orders Index registered 52 percent in November, which is 2 percentage points higher than October and the 29th straight month of registering 50 percent or higher.
The Imports Index contracted for the second month in a row as the index registered 49 percent, less than 1 percentage point lower then October. The Petroleum and Coal Products industry reported the second highest growth in imports out of five industries.
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