A report from
the Institute for Supply Management (ISM) showed on Monday the U.S.
manufacturing sector’s activity contracted again in November albeit
at a slower pace than in the previous four months.
The ISM's index
of manufacturing activity - the manufacturing PMI - checked in at 48.4 per cent
in November, up from an unrevised October reading of 46.5 per cent. The latest reading pointed
to a shrinkage in the U.S. factory
sector for the eighth straight month, the pace of which, however, was the softest since June
(48.5).
Economists had predicted
the indicator to advance to 47.5 per cent.
According to
the report, the New Orders Index jumped 3.3 percentage points to 50.4 per cent
last month, returning into expansion territory
after seven consecutive months in contraction. The Production Index increased
0.6 percentage point to 46.8 per cent but continued to be in decreasing territory. In addition, the Employment Index climbed
3.7 percentage points to 48.1 per cent, but remained in contraction territory, indicating that employment reduced in November for the sixth consecutive month.
The Inventories Index surged
5.5 percentage points to 48.1 per cent, indicating
a slowing rate of contraction in manufacturing inventories. Meanwhile, the Supplier
Deliveries Index declined 3.3 percentage points to
48.7 per cent, indicating that the delivery
performance of suppliers to manufacturing organizations was faster in November
after four consecutive months of slower deliveries. On
the price front, the Prices Index fell 4.5 percentage points to 50.3 per cent, indicating
raw materials prices rose for the second straight month in November.