Activity in the U.S. manufacturing sector contracted for the first time in over two years in the month of November, according to a report released by the Institute for Supply Management on Thursday.<\/p>\n
The ISM said its manufacturing PMI slipped to 49.0 in November from 50.2 in October, with a reading below 50 indicating a contraction. Economists had expected the index to edge down to 49.8.<\/p>\n
With the slightly bigger than expected decrease, the manufacturing PMI fell to its lowest level since hitting 43.5 in May of 2020.<\/p>\n
“The U.S. manufacturing sector dipped into contraction, with the Manufacturing PMI at its lowest level since the coronavirus<\/span> pandemic recovery began,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.<\/p>\n He added, “With Business Survey Committee panelists reporting softening new order rates over the previous six months, the November composite index reading reflects companies’ preparing for future lower output.”<\/p>\n The modest decrease by the headline index came as the new orders index dipped to 47.2 in November from 49.2 in October, suggesting a slightly accelerated contraction in new orders.<\/p>\n The production index also edged down to 51.5 in November from 52.3 in October, indicating a modest slowdown in the pace of growth.<\/p>\n Pointing to a downturn in employment in the manufacturing sector, the employment index also slipped to 48.4 in November from 50.0 in October.<\/p>\n A separate report released by payroll processor ADP on Wednesday said employment in the manufacturing sector tumbled by 100,000 jobs in November.<\/p>\n The ISM report also showed prices decreased at accelerate rate, as the prices index slid to 43.0 in November from 46.6 in October, hitting its lowest level since May 2020.<\/p>\n Next Monday, the ISM is scheduled to release a separate report on service sector activity in the month of November. The services PMI is expected to inch up to 55.6 in November from 54.4 in October. <\/p>\n