According to the latest Manufacturing ISM Report on Business, supply executives said economic activity in the manufacturing sector expanded in November for the 18th consecutive month, and the overall economy grew for the 66th consecutive month.

The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. Holcomb said, “The November PMI registered 58.7%, a decrease of 0.3 percentage points from October’s reading of 59%, indicating continued expansion in manufacturing.”

The New Orders Index registered 66%, an increase of 0.2 percentage points from the reading of 65.8% in October. The Production Index registered 64.4%, 0.4 percentage points below the October reading of 64.8%. The Employment Index grew for the 17th consecutive month, registering 54.9%, a decrease of 0.6 percentage points below the October reading of 55.5%.

Inventories of raw materials registered 51.5%, a decrease of 1 percentage point from the October reading of 52.5%. The Prices Index registered 44.5%, down 9 percentage points from the October reading of 53.5%, indicating lower raw materials prices in November relative to October.

“Comments from the panel are upbeat about strong demand and new orders, with some expressing concerns about West Coast port slowdowns and the threat of a potential dock strike,” Holcomb said.

Of the 18 manufacturing industries, 14 are reporting growth in November in the following order: Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Furniture & Related Products; Fabricated Metal Products; Textile Mills; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Paper Products; Plastics & Rubber Products; Machinery; Transportation Equipment; Nonmetallic Mineral Products; Petroleum & Coal Products; and Primary Metals. The only industry reporting contraction in November is Apparel, Leather & Allied Products.

What Respondents Are Saying

• “The Holiday Season continues to exceed expectations. Customers are generally optimistic for future sales growth.” (Food, Beverage & Tobacco Products)
• “Continued strong demand. Deliveries through the West Coast are delayed due to a number of factors.” (Fabricated Metal Products)
• “We have seen continued growth in transportation equipment. Slowdowns and threats of strike of West Coast longshoreman weigh heavily on U.S. operations.” (Transportation Equipment)
• “Business continues to be stronger than last year.” (Furniture & Related Products)
• “Improvement in defense spending and manufacturing.” (Computer & Electronic Products)
• “West Coast port longshoreman slowdown is affecting business with longer lead times.” (Chemical Products)
• “We continue to hire people. People are also leaving to take other jobs indicating the job market is starting to improve for manufacturing.” (Electrical Equipment, Appliances & Components)
• “Market has remained strong going into year-end.” (Wood Products)
• “Order intake has been substantial, resulting in a very healthy backlog. The packaging automation requirements in the food and beverage market are robust.” (Machinery)
• “Demand remains strong for new orders.” (Miscellaneous Manufacturing)

To view the full ISM Manufacturing report, click here.