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Manufacturing Activity Still Contracting

Economic activity in the U.S. manufacturing sector decreased for the 13th month in a row in November, according to the Institute for Supply Management.

What’s going on: The ISM’s Manufacturing PMI® was at 46.7 in November, unchanged from October. Any number below 50 indicates contraction.

  • The year-plus period of slowed activity follows a 28-month period of expansion.

The details: While demand remained negative last month, it stabilized somewhat, with new orders falling at a slower pace than they did in October (up to 48.3 from 45.5).

  • However, production decreased again after two months of growth, to 48.5 from October’s 50.4.
  • Also on the decline in November were hiring (down to 45.8 from 46.8) and exports (down to 46.0 from 49.4).

Supply chain bright spot: Manufacturer lead times were down to 46.2 in November from 47.7 in October, “reflecting ongoing progress from the supply chain challenges over the past few years,” NAM Chief Economist Chad Moutray said.

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