U.S. manufacturing economic activity contracted in November for the first time since May 2020, according to the most recent Manufacturing ISM® Report on Business®. This happened after 29 consecutive months of growth. The manufacturing PMI was 49%, 1.2 percentage points lower than October’s 50.2%.
The food, beverage, and tobacco industry reported contraction during November. Temporary labor remained up in price for the third consecutive month, and the industry reported a decline in new orders.
The prices index fell 3.6 percentage points to 43%, indicating that raw materials prices decreased for the second time in 29 months. The food, beverage, and tobacco products industry reported faster supplier deliveries as well as employment growth. However, the industry also reported a decrease in production.
According to once respondent, “Consumer goods are slowing down in several of our markets, although the U.S. economy seems decent. Cannot say the same for the European economy.”