American manufacturing sector continues expansion

Institute for Supply Management's Purchasing Managers Index registers 56.6 percent for November, the 16th straight month of expansion.

The Institute for Supply Management (ISM, Tempe, Ariz., USA) on Dec. 1 reported that economic activity in the U.S. manufacturing sector expanded in November for the 16th consecutive month, and the overall economy grew for the 19th consecutive month. ISM's Purchasing Managers Index (PMI) registered 56.6 percent, following an October value of 56.9 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6 percent, November’s rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in the sector. Prices moderated slightly during the month, but comments from the respondents express concerns with regard to pricing pressures. The list of commodities in short supply increased, though short supply items are not yet posing significant problems. Manufacturing continues to benefit from the recovery in autos, but those industries reliant upon housing continue to struggle.”

12-month ISM Manufacturing Index history (percent):

  • November 2010: 56.6
  • October 2010: 56.9
  • September 2010: 54.4
  • August 2010: 56.3
  • July 2010: 55.5
  • June 2010: 56.2
  • May 2010: 59.7
  • April 2010: 60.4
  • March 2010: 59.6
  • February 2010: 56.5
  • January 2010: 58.4
  • December 2009: 55.9