Purchasing Managers' Index Unchanged in November at 46.7%

Tempe, AZ, December 1, 2023-The Manufacturing Purchasing Managers' Index (PMI) registered 46.7% in November, unchanged from the 46.7% recorded in October, say the nation's supply executives in the latest Manufacturing ISM Report On Business. 

The overall economy continued in contraction for a second month after one month of weak expansion preceded by nine months of contraction and a 30-month period of expansion before that. (A Manufacturing PMI above 48.7%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index remained in contraction territory at 48.3%, 2.8 percentage points higher than the figure of 45.5% recorded in October. 

The Production Index reading of 48.5% is a 1.9-percentage point decrease compared to October’s figure of 50.4%.

The Prices Index registered 49.9%, up 4.8 percentage points compared to the reading of 45.1% in October. 

The Backlog of Orders Index registered 39.3%, 2.9 percentage points lower than the October reading of 42.2%.

The Employment Index registered 45.8%, down one percentage point from the 46.8% reported in October.

The Supplier Deliveries Index figure of 46.2% is 1.5 percentage points lower than the 47.7% recorded in October. (Supplier Deliveries is the only ISM Report On Business® index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

The Inventories Index increased by 1.5 percentage points to 44.8%; the October reading was 43.3%. 

The New Export Orders Index reading of 46% is 3.4 percentage points lower than October’s figure of 49.4%. 

The Imports Index remained in contraction territory, registering 46.2%, 1.7 percentage points lower than the 47.9% reported in October.

The three manufacturing industries that reported growth in November are food, beverage & tobacco products; nonmetallic mineral products; and transportation equipment. The 14 industries reporting contraction in November-in the following order-are paper products; printing & related support activities; electrical equipment, appliances & components; computer & electronic products; apparel, leather & allied products; textile mills; machinery; primary metals; furniture & related products; miscellaneous manufacturing; chemical products; fabricated metal products; wood products; and plastics & rubber products.