November 2012 ISM Reports- Manufacturing Contracting

The ISM manufacturing index indicated contraction in November. PMI was at  49.5% in November, down from 51.7% in October. 

US manufacturing shrank to its lowest level since July 2009, at the end of the Great Recession.

US manufacturing shrank to its lowest level since July 2009, at the end of the Great Recession.

This confirms  the trend we identified in our October Business Trends Report- precision machining shipments have fallen to a rate below those of 2011.

The ISM  PMI report was expected to remain at October’s level of 51.7.

More disappointment:

The employment index was at 48.4%, down from 52.1%, and the new orders index  was at 50.3%, down from 54.2%.

Why this is scary:

Weakness in manufacturing makes these ratios even worse.

Weakness in manufacturing makes these ratios even worse.

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One Response to November 2012 ISM Reports- Manufacturing Contracting

  1. speakingofprecision says:

    Layoffs highest in over a year. The number of respondents with part of their workforce on short-time or layoff increased from zero in October to 18% in November, the highest reading since May 2011.

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