Updated: 01-Dec-22 10:47 ET

November ISM Manufacturing Index

Updated: 01-Dec-22 10:47 ET

Highlights

• The November ISM Manufacturing Index dropped to 49.0% (Briefing.com consensus 49.8%) from 50.2% in October. The dividing line between expansion and contraction is 50.0%, so the sub-50.0% reading for November reflects a contraction in manufacturing activity. The ISM for November hit its lowest level since May 2020, breaking a string of 29 months of expansion.

Key Factors

• The New Orders Index decreased to 47.2% from 49.2%.
• The Prices Index fell to 43.0% from 46.6%, hitting its lowest level since May 2020.
• The Backlog of Orders Index dropped to 40.0% from 45.3%.
• The Supplier Deliveries Index rose to 47.2% from 46.8%.
• The Production Index slipped to 51.5% from 52.3%.
• The New Export Orders Index increased to 48.4% from 46.5%.
• The Employment Index dipped to 48.4% from 50.0%.

Big Picture

• The key takeaway from the report is that manufacturing activity contracted for the first time since May 2020, demonstrating that the cumulative effect of rate hikes around the globe are adversely impacting demand while at the same time curtailing inflation pressures.

Category	NOV	OCT	SEP	AUG	JUL
Total Index	49.0	50.2	50.9	52.8	52.8
Orders	47.2	49.2	47.1	51.3	48.0
Production	51.5	52.3	50.6	50.4	53.5
Employment	48.4	50.0	48.7	54.2	49.9
Deliveries	47.2	46.8	52.4	55.1	55.2
Inventories	50.9	52.5	55.5	53.1	57.3
Export Orders	48.4	46.5	47.8	49.4	52.6
Prices paid (not seas adj)	43.0	46.6	51.7	52.5	60.0