November ISM Index Decreases Slightly

By December 1, 2010Economy

Today’s Institute for Supply Management report on manufacturing showed that the closely-watched PMI Index of industrial activity moderated down slightly to 56.6 in November from 56.9 in October, which was the highest level in five months.  Two-thirds the way through the fourth quarter and the PMI index during the past two months has been measurably higher than the 55.4 monthly average during the third quarter. 

However, the fact that several important components of the report (exports, production, new orders and employment) are not as high as they were during the first half of the year indicates that the manufacturing recovery has slowed. This is likely due to continued weakness in the housing market which is a major demand driver for manufacturing industries such as wood products, furniture and nonmetallic minerals which were some of the industries that did not report growth last month.

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