WASHINGTON: US manufacturing activity contracted for the 13th straight month in November, with a sharper slowdown seen in employment and supplier deliveries, according to survey data published Friday. The Institute for Supply Management’s (ISM) manufacturing index came in worse than expected at 46.7 percent last month — in line with October’s gloomy survey data.
This was below the median expectation of economists surveyed by MarketWatch, and lower than the 50 percent threshold indicating growth in the sector. "Companies are still managing outputs appropriately as order softness continues,” ISM survey chief Timothy Fiore said in a statement.
"The manufacturing ISM index held steady in November against expectations of an increase,” High Frequency Economics chief US Economist Rubeela Farooqi wrote in a note to clients.
"The manufacturing sector continues to face challenges from higher borrowing costs and tighter credit conditions,” she added. Fiore from the ISM said that all five of the subindexes that make up the manufacturing index were in contraction territory last month, "up from four in October.”
The subindexes for employment and supplier deliveries both contracted at a faster rate than in October, while the index for production tipped into contraction territory, the ISM survey found.
In more positive news, the subindexes for new orders and inventories were found to be contracting at a slower rate. The US economy "appears to be slowing dramatically,” one respondent in the computer and electronic products industry told the ISM.
They added that costs were "exploding” for some inputs like cold-rolled steel, causing manufacturers to load up on these items. — AFP