Economic activity in the manufacturing sector contracted again in November for the 13th consecutive month. This news comes from the most recent Manufacturing ISM® Report On Business®. The November Manufacturing PMI® was 46.7%, unchanged from the same reading the previous month.
Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, remarked that companies are managing outputs correctly as order softness continues. Additionally, panelists’ companies reduced month-over-month production slightly and reduced head counts, mostly through layoffs or attrition.
Three industries reported growth in November, including the Food, Beverage, and Tobacco Industry. The industry reported a growth in new orders, a growth in production, and a growth in employment. It continued to experience slower supplier deliveries and also reported customers’ inventories as too low.
One industry respondent remarked, “Our executives have requested that we bring down inventory levels considerably, and it has started causing customer shortages. Both finished goods, and low inventories of raw and packing materials are creating issues in fulfilling customer demand, and in some cases causing serious (production) delays.”