U.S. Manufacturing Index at Lowest Point in 26 Years

(Industry Week – Adrienne Selko)

Key demand drivers for manufacturing growth, exports and business investment, are weakening significantly

The Manufacturing ISM Report on Business disclosed that the manufacturing sector failed to grow in November for the fourth consecutive month, and the overall economy contracted for the second consecutive month. The PMI registered 36.2%, 2.7 percentage points lower than the 38.9% reported in October. This is the lowest reading since May 1982 when the PMI registered 35.5%.

“The fall in the November Institute of Supply Management (ISM) Index to its lowest level since May 1982 indicates that the rapidly declining U.S. and global economies have created a deep and worrisome slump in the U.S. manufacturing sector,” said Cliff Waldman, Economist for the Manufacturers Alliance/MAPI. “The 12th consecutive decline in new orders to the lowest level since June 1980 reflects that fact that the key demand drivers for manufacturing growth, exports and business investment, are weakening significantly. And, even more disconcerting, the accelerated decline in the backlog of orders in all industries with the exception of apparel suggests that the near-term outlook for manufacturing production is growing weaker. Read more here.