Monday, December 02, 2013

ISM Manufacturing index increases in November to 57.3

by Calculated Risk on 12/02/2013 10:00:00 AM

The ISM manufacturing index indicated faster expansion in November. The PMI was at 57.3% in November, up from 56.4% in October. The employment index was at 56.5%, up from 53.2%, and the new orders index was at 63.6%, up from 60.6% in October.

From the Institute for Supply Management: November 2013 Manufacturing ISM Report On Business®

Economic activity in the manufacturing sector expanded in November for the sixth consecutive month, and the overall economy grew for the 54th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI™ registered 57.3 percent, an increase of 0.9 percentage point from October's reading of 56.4 percent. The PMI™ has increased progressively each month since June, with November's reading reflecting the highest PMI™ in 2013. The New Orders Index increased in November by 3 percentage points to 63.6 percent, and the Production Index increased by 2 percentage points to 62.8 percent. The Employment Index registered 56.5 percent, an increase of 3.3 percentage points compared to October's reading of 53.2 percent. This reflects the highest reading since April 2012 when the Employment Index registered 56.8 percent. 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."
emphasis added
ISM PMIClick on graph for larger image.

Here is a long term graph of the ISM manufacturing index.

This was above expectations of 55.2% and suggests manufacturing expanded at a faster pace in November.