Input Stories

The S&P Global Manufacturing PMI was 52.2 in November, down from the October reading of 52.5. New orders rose in November, with manufacturers noting gains among both existing and new clients. However, exports declined for the fifth consecutive month, as tariffs were reported to have led to the steepest drop in new export orders since July. Meanwhile, prices on inputs continued to increase, but the degree of pass-through weakened, and selling price inflation was near lows for this year. In sum, the rate of inflation remained elevated from a historical context in November.

Production continued to rise, while sales remained weak, allowing stocks of finished goods to rise for the fourth consecutive month, beating October’s record for the quickest rate of increase in the survey’s 18-year history. In anticipation of higher future production, employment growth in November was the steepest in three months and contributed to a decline in backlogs. Meanwhile, delivery times continued to worsen for a third consecutive month, a result of import challenges from tariffs.

Plans for new investments and products led to an increase in business confidence, hitting its highest level since June. At the same time, the end of the federal government shutdown was noted as supplementing the boost in confidence, with manufacturers hopeful of improved policy support and political stability.