Manufacturing sector grows for a 10th month
NEW YORK (AP) — US manufacturing expanded in November as new orders and production improved, but weakness in employment suggested that industrial jobs may not be as plentiful in coming months.
The Institute for Supply Management, a Tempe, Arizona-based trade group, said yesterday that its manufacturing index registered 50.8 last month, down from 50.9 in October. A reading above 50 indicates growth; below that spells contraction.
The November results, which marked the 10th consecutive monthly expansion. were slightly stronger than the 50.1 expected by analysts polled by Thomson/IFR Markets.
"While other segments of the economy are struggling, manufacturing continues to grow due to continuing strength in new orders, and a recovery in production from last month," Norbert Ore, chairman of the institute's business survey committee, said in a statement. "Prices, driven higher by energy prices, are once again the major concern."
The manufacturing report showed a decline in the employment index to 47.8 from 52.0, indicating manufacturing jobs are contracting, according to Doug Porter, deputy chief economist at BMO Capital Markets.
"The one concern in the report is the steep drop in the employment index to a ready below 50," Porter said. The weak result could foreshadow a disappointing national employment report on Friday, he added.
The latest ISM index, while still showing growth, is down from its recent peak of 56.0 in June.