December 1, 2017 – The ISM Manufacturing Index is derived from a survey of purchasing managers and their outlook on overall conditions by looking at factors such as orders for durable goods, industrial production and hiring. It gives a general direction rather than the specific strength of the factory sector and manufacturing activity in the U.S. A reading above 50 is an indicator that the manufacturing sector is growing while a reading below 50 indicates a contraction
The November ISM Manufacturing report came in at a level of 58.2, below expectations of 58.4 and below October’s level of 58.7. New orders rose to 64, above last month’s reading of 63.4. Production also increased in October, rising 2.9% to 63.9. Prices fell 3.0% to 65.5 with raw material prices up for the 21st straight month.
Out of the 18 industries in the Manufacturing Index, 14 showed growth in November. Paper products, machinery, and transportation equipment were among the strongest industries to report growth. Wood products, and petroleum & coal products reported declines while two other industries showed no change. Regardless of the slight slowdown in manufacturing, a reading above 50 still indicates growth in this sector.