Registering 48.4%, the ISM (Institute for Supply Management) Manufacturing PMI increased by 1.9 points in November, indicating contraction at a slower rate compared to October. This is the eighth consecutive month of contraction after expanding in March earlier this year.
“Of the five subindexes that directly factor into the Manufacturing PMI, only one (new orders) was in expansion territory, the same number of indexes as in October,” says Timothy Fiore, chair of the ISM’s manufacturing business survey committee.
After seven months of contraction, the new orders index entered expansion territory last month with a reading of 50.4%.
The production and employment indexes contracted at a slower rate, registering increases of 0.6 points and 3.7 points, respectively.
Three industries reported growth in November:
- Food, beverage & tobacco products
- Computer & electronic products
- Electrical equipment, appliances & components
“Two of the six largest manufacturing industries — food, beverage & tobacco products and computer & electronic products — expanded in November, the same number of industries as in October,” says Fiore.
Several survey respondents comment on how the presidential election outcome will impact trade policies.
“After the election, we have seen an uptick in customers wanting to come back to the U.S. for making their products,” writes a respondent in the primary metals industry.
“Late to the game, we are now working on our buying plan in light of potential increased tariffs on imports from China. Cost and capacity of U.S. manufacturing is a concern; a lack of relationship with alternate low-cost international manufacturers is another,” reports an executive in miscellaneous manufacturing.
Other survey comments demonstrate a mixed bag of business conditions going into 2025 depending on the industry. Transportation equipment and fabricated metal products respondents report slowing business, while electrical equipment, appliances & components and textile mills respondents are seeing a higher volume of orders and an uptick in sales.
