ISM: Manufacturing, Economy Grow Again In November
“The Production Index registered 61.5 percent, an in- crease of 2.2 percentage points compared to the October reading of 59.3 percent. The Prices Index registered 82.4 percent, down 3.3 percentage points compared to the Oc- tober figure of 85.7 percent. The Backlog of Orders Index registered 61.9 percent, 1.7 percentage points lower than the October reading of 63.6 percent. “The Employment Index registered 53.3 percent, 1.3 percentage points higher compared to the October read- ing of 52 percent. The Supplier Deliveries Index registered 72.2 percent, down 3.4 percentage points from the Oc- tober figure of 75.6 percent. The Inventories Index regis- tered 56.8 percent, 0.2 percentage point lower than the October reading of 57 percent. The New Export Orders Index registered 54 percent, a decrease of 0.6 percentage point compared to the October reading of 54.6 percent. The Imports Index registered 52.6 percent, a 3.5-percent- age point increase from the October’s 49.1 percent.
Economic activity in the manufacturing sector grew in November, with the overall economy achieving an 18th consecutive month of growth, say the nation’s supply ex- ecutives in the latest Manufacturing ISM Report On Busi- ness. The report was issued last week by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Manage- ment (ISM) Manufacturing Business Survey Committee: “The November Manufacturing PMI registered 61.1 per- cent, an increase of 0.3 percentage point from the October reading of 60.8 percent. This figure indicates expansion in the overall economy for the 18th month in a row after a contraction in April 2020. The New Orders Index regis- tered 61.5 percent, up 1.7 percentage points compared to the October reading of 59.8 percent.
“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement. All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, contin- ued shortages of critical lowest-tier materi- als, high commodity prices and difficulties in transporting products. Coronavirus issues — worker absenteeism, short-term shutdowns, difficulties in filling open positions and over- seas supply chain problems — continue to limit manufacturing growth potential. “Panelists remain focused on the impor- tance of improving supply chain issues to respond to ongoing high levels of demand. Demand expanded, with the (1) New Orders Index growing, supported by continued ex- pansion of the New Export Orders Index, (2) Customers’ Inventories Index remaining at a very low level and (3) Backlog of Orders Index staying at a very high level. Consump- tion grew during the period, with a combined 3.5-percentage point increase to the Manu- facturing PMI calculation. “The Employment Index expanded for a third month, with some indications that the ability to hire is improving, partially offset by the challenges of turnover and backfilling. Inputs continued to constrain production expansion, but there are early signs of sup- plier performance improving. The Supplier Deliveries Index slowed again, while the Inventories Index expanded more slowly. In November, the Prices Index expanded for the 18th consecutive month, at a slower rate, indicating continued supplier pricing power and scarcity of supply chain goods.”
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December 6, 2021
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