November 2011 ISM Reports

Click image for larger version

The pace of growth in manufacturing picked up slightly in November, with the Institute for Supply Management’s (ISM) PMI rising to 52.7 percent, from 50.8 in October (50 percent is the breakpoint between contraction and expansion). After reciting some report details, Bradley Holcomb, chair of ISM’s Manufacturing Business Survey Committee, wrapped up his comments by saying, “Respondents cite continuing concerns about the general economic environment, government regulations and European financial conditions, but are cautiously more optimistic about the next few months based on lower raw materials pricing and favorable levels of new orders."
 

Click image for larger version

The non-manufacturing sector grew at a marginally slower pace in November, reflected by a 0.9 percentage point drop (to 52.0 percent) in the non-manufacturing index (now known simply as the “NMI”). This is the lowest reading since January 2010, when the index registered 50.7 percent. "Respondents' comments for the most part project continued slow, incremental growth. There still remains a strong concern about lagging employment,” concluded Anthony Nieves, chair of ISM’s Non-Manufacturing Business Survey Committee.
 

Click image for larger version

Expanding new orders and employment, and higher production helped lift overall activity for Wood Products in November. Paper Products also expanded, the main foreward-looking “negatives” being declines in orders and a rise in inventories.

Construction and Ag & Forestry both reported contraction in overall activity, while Real Estate expanded.

As the bar chart and table above indicate, input price behavior was mixed during November: prices fell more slowly for manufacturing but rose more quickly for the service sector.

Paper and paper products were the only relevant commodities up in price during November; cardboard products were down in price. Some respondents reported paying more for fuel while others paid less. No relevant commodity was described as being in short supply.