November Manufacturing Expanded to 53.2%

Tempe, AZ, December 1, 2016—The November PMI registered 53.2%, an increase of 1.3 percentage points from the October reading of 51.9%, according to the Manufacturing ISM Report On Business.

The New Orders Index registered 53%, an increase of 0.9 percentage point from the October reading of 52.1%.

The Production Index registered 56%, 1.4 percentage points higher than the October reading of 54.6%.

The Employment Index registered 52.3%, a decrease of 0.6 percentage point from the October reading of 52.9%.

Inventories of raw materials registered 49%, an increase of 1.5 percentage points from the October reading of 47.5%.

The Prices Index registered 54.5% in November, the same reading as in October, indicating higher raw materials prices for the ninth consecutive month.

Comments from the panel cite increasing demand, some tightness in the labor market and plans to reduce inventory by the end of the year.

Of the 18 manufacturing industries, 11 are reporting growth in November in the following order: Miscellaneous Manufacturing; Petroleum & Coal Products; Paper Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Chemical Products; Fabricated Metal Products; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; and Primary Metals.

The six industries reporting contraction in November — listed in order — are: Printing & Related Support Activities; Wood Products; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Furniture & Related Products.