Economic activity in the manufacturing sector grew last month, with the overall economy achieving an 18th consecutive month of growth, according to the latest Manufacturing ISM Report on Business.
Timothy R. Fiore, chair of the Institute for Supply Management, released the report.
The November Manufacturing PMI registered 61.1%, an increase of 0.3 percentage point from the October reading of 60.8%, Fiore said.
The figure indicates “expansion in the overall economy for the 18th month in a row after a contraction in April 2020,” he said.
The New Orders Index registered 61.5%, up 1.7 percentage points compared to the October reading of 59.8%.
The Production Index registered 61.5%, an increase of 2.2 percentage points compared to the October reading of 59.3%.
The Prices Index registered 82.4%, down 3.3 percentage points compared to the October figure of 85.7%.
The Backlog of Orders Index registered 61.9%, 1.7 percentage points lower than the October reading of 63.6%.
The Employment Index registered 53.3%, 1.3 percentage points higher compared to the October reading of 52%.
The Supplier Deliveries Index registered 72.2%, down 3.4 percentage points from the October figure of 75.6%.
The Inventories Index registered 56.8%, 0.2 percentage point lower than the October reading of 57%.
The New Export Orders Index registered 54%, a decrease of 0.6 percentage point compared to the October reading of 54.6%.
The Imports Index registered 52.6%, a 3.5-percentage point increase from the October reading of 49.1%.
“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement,” Fiore said. “All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, continued shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products. Coronavirus pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential. However, panel sentiment remains strongly optimistic, with 10 positive growth comments for every cautious comment. Panelists remain focused on the importance of improving supply chain issues to respond to ongoing high levels of demand.”