by Bill McBride on 12/01/2016 10:07:00 AM
Thursday, December 01, 2016
The ISM manufacturing index indicated expansion in November. The PMI was at 53.2% in November, up from 51.9% in October. The employment index was at 52.3%, down from 52.9% last month, and the new orders index was at 53.0%, up from 52.1%.
From the Institute for Supply Management: November 2016 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 90th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.Click on graph for larger image.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The November PMI® registered 53.2 percent, an increase of 1.3 percentage points from the October reading of 51.9 percent. The New Orders Index registered 53 percent, an increase of 0.9 percentage point from the October reading of 52.1 percent. The Production Index registered 56 percent, 1.4 percentage points higher than the October reading of 54.6 percent. The Employment Index registered 52.3 percent, a decrease of 0.6 percentage point from the October reading of 52.9 percent. Inventories of raw materials registered 49 percent, an increase of 1.5 percentage points from the October reading of 47.5 percent. The Prices Index registered 54.5 percent in November, the same reading as in October, indicating higher raw materials prices for the ninth consecutive month. Comments from the panel cite increasing demand, some tightness in the labor market and plans to reduce inventory by the end of the year."
Here is a long term graph of the ISM manufacturing index.
This was above expectations of 52.3%, and suggests manufacturing expanded at as faster pace in November than in October.
Another solid economic report.