According to the latest Manufacturing ISM Report on Business, activity in the manufacturing sector continued its 18 month expansion once again in November of 2014. The report was issued by Bradley J. Holcomb, chair of the Institute for Supply Management.
In November, the PMI registered 58.7 percent, which represented a decrease of 0.3 percentage points from the 59 percent reading that was obtained during October. This represented a continued expansion in all sections of manufacturing across the board.
In terms of the New Orders Index, it registered 66 percent during the same period, which itself represented a 0.2 percentage point increase from the reading of 65.8 percent that occurred during October.
Likewise, the Production Index registered a 64.4 percent reading, which was 0.4 percentage points below the reading of 64.8 percent that was obtained during October. Despite this, the Employment Index for manufacturing in the United States grew for the 17th consecutive month during this time to a reading of 54.9 percent.
The Prices Index, which gave a reading of 53.5 percent during the month of October, was down a full 9 percentage points to 44.5 percent during November. Overall, these numbers indicate significantly lower raw materials prices when you compare November to October. This indicates a strong demand in the overall quantity of new orders. Despite this, some individuals have expressed concerns about both the threat of a hypothetical dock strike and about port slowdowns on the West Coast.
Out of the 18 different manufacturing industries, 14 of them reported average to strong growth during the month of November. These 14 growing industries include but are not limited to food, miscellaneous manufacturing, fabricated metal products, printing and related support activities, appliances and components, plastics and rubber products, machinery, petroleum and coal products, primary metals and more.
Out of all manufacturing industries, the only one to report a constriction during the month of November was apparel, leather and allied products. The remaining industries either remained stagnant or reported at least some level of growth compared to readings that were obtained during the same amount of time in the month of October.
Read the full report here: November 2014 Manufacturing ISM® Report On Business®