Manufacturing sector economic growth increased in November for the sixteenth consecutive month, and the overall economy improved for the nineteenth consecutive month, according to the Institute for Supply Management's Manufacturing ISM Report On Business. The PMI measured 56.6 percent.
"The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6 percent, November's rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in the sector. Prices moderated slightly during the month, but comments from the respondents express concerns with regard to pricing pressures. The list of commodities in short supply increased, though short supply items are not yet posing significant problems. Manufacturing continues to benefit from the recovery in autos, but those industries reliant upon housing continue to struggle," said Norbert J. Ore, CPSM, CPM, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
Ten of 18 surveyed manufacturing sectors grew in November, including the machinery, fabricated metal, plastics and rubber, appliances and components, and petroleum and coal industries.
Survey respondents commented on their industries:
• "We're starting to see capacity at suppliers become an issue." (Machinery)
• "Capital projects are being released, which is improving our sales." (Computer and Electronic Products)
• "International markets expanding rapidly. Domestic market is slowly rebounding." (Transportation Equipment)