U.S. Manufacturing Sector Kept Momentum in November -- IHS Markit
By Xavier Fontdegloria
Factory activity in the U.S. grew robustly in November, albeit
at the slowest pace in 11 months as labor and supply bottlenecks
continued to hit production, according to a survey of purchasing
managers released Wednesday.
The IHS Markit final U.S. Manufacturing Business Activity PMI
stood at 58.3 in November, marginally down from 58.4 in October,
and below the preliminary estimate of 59.1.
Economists polled by The Wall Street Journal expected the index
to be unchanged from its preliminary reading.
The indicator suggests that the U.S. manufacturing sector is
growing, as a reading above 50 indicates an expansion of activity.
However, the PMI was boosted in particular by the further
near-record lengthening of supplier lead times and increased
inventory building, while production continued to be crippled and
new order inflows slowed.
"While demand remains firm, November brought signs of new orders
growth cooling to the lowest so far this year, linked to shortages
limiting scope to boost sales and signs of push-back from customers
as prices continued to rise sharply during the month," said Chris
Williamson, chief business economist at IHS Markit.
In a sign that supply-chain bottlenecks could start to abate,
supplier delivery delays eased to the lowest for six months, the
However, widespread shortages of inputs meant production growth
was again severely constrained to the extent that the survey is so
far consistent with manufacturing acting as a drag on the economy
during the fourth quarter, Mr. Williamson said.
Longer lead times, supplier shortages and higher energy prices
pushed the rate of cost inflation to a fresh series high. Although
firms still sought to pass on greater costs to clients, the pace of
increase in prices charged slowed to the softest in three months,
the report said.
Write to Xavier Fontdegloria at email@example.com
(END) Dow Jones Newswires
December 01, 2021 10:19 ET (15:19 GMT)
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