U.S. Factory Activity Expanded Strongly in November; Supply-Chain Strains Eased Modestly -- ISM
By Xavier Fontdegloria
Factory activity across the U.S. kept bustling in November on
strong demand, with firms reporting tentative signs that
supply-side constraints eased somewhat, according to a survey of
purchasing managers released Wednesday.
The ISM Manufacturing Report on Business PMI rose to 61.1 in
November from 60.8 in October, data from the Institute for Supply
Management show. The reading came in line with the consensus
forecast from economists polled by The Wall Street Journal.
The index suggests that the U.S. manufacturing sector grew at a
solid rate in November as it stood well above the 50.0 point that
separates expansion from contraction. It also indicates a slight
acceleration of factory activity compared with the previous
"The U.S. manufacturing sector remains in a demand-driven,
supply chain-constrained environment, with some indications of
slight labor and supplier delivery improvement," said Timothy
Fiore, chair of the ISM Manufacturing Business Survey
Demand for goods was strong, according to the data. The new
orders index increased to 61.5 from 59.8 the previous month, the
customers' inventories index fell to 25.1 from 31.7, and the
backlog of orders index fell slightly to 61.9 from 63.6.
The production index rose to 61.5 in November from 59.3 the
previous month, while the employment index edged up to 53.3 from
"Meeting demand remains a challenge, due to hiring difficulties
and a clear cycle of labor turnover at all tiers," Mr. Fiore
The supplier deliveries index softened to 72.2 from 75.6,
indicating that supplier delivery rates are improving. The
inventories index was broadly stable at 56.8.
Still, transportation networks, a harbinger of future supplier
delivery performance, are still performing erratically, Mr. Fiore
The prices index declined to 82.4 from 85.7 in October, but
remained at historically high levels.
Comments from respondents to the survey reported widespread
delivery delays, but signaled that these have started to ease or
are no longer getting worse.
"We are still seeing shortages with various metals. Plastic
resins seem to be slowly improving," said one respondent from the
electrical equipment sector.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
December 01, 2021 10:44 ET (15:44 GMT)
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