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New Orders and Production Continued to Expand in November

Manufacturing expanded in November, according to the latest Manufacturing ISM Report on Business. The report was issued by the Institute for Supply Management Manufacturing Business Survey Committee.

According to the report, the manufacturing sector grew in the month, with both new orders and production continuing to expand. With the PMI at 56.6 percent, November's rate of growth is the second fastest in the past six months. Exports and imports continue to support expansion in the sector.

Prices moderated slightly during the month, but comments from the respondents expressed concerns with regard to pricing pressures. The list of commodities in short supply increased, though short supply items are not yet posing significant problems. Manufacturing continued to benefit from the recovery in autos, but those industries reliant upon housing continued to struggle.

Of the 18 manufacturing industries, 10 reported growth in November, in the following order: Computer & Electronic Products; Petroleum & Coal Products; Apparel, Leather & Allied Products; Machinery; Fabricated Metal Products; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Chemical Products; and Primary Metals.

The six industries reporting contraction in November  - listed in order - are: Printing & Related Support Activities; Furniture & Related Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Paper Products; and Miscellaneous Manufacturing.

Get the forecast for manufacturing in MDM's 2011 Economic Forecast webcast.

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