ISM: November Manufacturing Index Highest in 2013
The Institute for Supply Management said economic activity in the manufacturing sector expanded in November for the sixth consecutive month, and the overall economy grew for the 54th consecutive month.
The Purchasing Managers Index (PMI) registered 57.3%, an increase of 0.9 percentage point from October’s reading of 56.4%. The PMI has increased progressively each month since June, with November’s reading reflecting the highest PMI in 2013.
A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
The New Orders Index increased in November by 3 percentage points to 63.6%, and the Production Index increased by 2 percentage points to 62.8%. The Employment Index registered 56.5%, an increase of 3.3 percentage points compared to October’s reading of 53.2%. This reflects the highest reading since April 2012 when the Employment Index registered 56.8%.
With 15 of 18 manufacturing industries reporting growth in November relative to October, the positive growth trend characterizing the second half of 2013 is continuing.
The 15 manufacturing industries reporting growth in November are: Plastics & Rubber Products; Textile Mills; Furniture & Related Products; Primary Metals; Food, Beverage & Tobacco Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Transportation Equipment; Chemical Products; Computer & Electronic Products; Nonmetallic Mineral Products; and Fabricated Metal Products.
The three industries reporting contraction in November are: Apparel, Leather & Allied Products; Wood Products; and Machinery.
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