For the sixth consecutive month, the Institute for Supply Management's Manufacturing Report on Business, shows that manufacturing expanded again in November, according to the nation's supply chain executives. The report, issued on Dec. 2, showed the Purchasing Manager's Index (PMI) registered 57.3%, an increase of 0.9% from October's reading of 56.4%.
"The PMI has increased progressively each month since June, with November's reading reflecting the highest PMI in 2013," commented Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
The New Orders Index for November rose 3.0% to 63.6% from 60.6% in October, showing a faster rate of growth, and the Production Index was up 2.0% in November to 62.8% from 60.8% in October.
The Employment Index registered 56.5% for November, an increase of 3.3 percentage points compared to October's reading of 53.2%. "This reflects the highest reading since April 2012 when the Employment Index registered 56.8%," Holcomb noted.
Of the 18 manufacturing industries represented by the report, 15 reported growth in November. First on the list in order of growth rates were plastics and rubber Products. That's is a big improvement over the past several month's report on that sector.
Durable goods orders down in October
According to the latest report released from the U.S. Department of Commerce on Nov. 27, manufactured durable goods orders in October decreased $4.6 billion or 2.0% to $230.0 billion. This decrease, down following two consecutive monthly increases, followed a 4.1% September increase. Excluding transportation, new orders decreased 0.1%, and excluding defense, new orders decreased 1.3%.
Shipments of manufactured durable goods in October, up three consecutive months, increased $0.5 billion or 0.2% to $233.2 billion. This was at the highest level since the series was first published on a NAICS basis in 1992, and followed a 0.5% September increase. Transportation equipment, also up three consecutive months, drove the increase, 0.7 billion or 1.1% to $70.9 billion.
Inventories of manufactured durable goods, up six of the last seven months, increased $1.2 billion or 0.3% to $383.3 billion. This category was also at the highest level since the series was first published on a NAICS basis, and followed a 0.8% September increase. Transportation equipment, up 17 of the last 18 months, led the increase $1.1 billion or 0.9% to $120.0 billion.
Nondefense new orders for capital goods in October decreased $3.2 billion or 3.9% to $77.9 billion. Shipments increased slightly to $74.2 billion. Unfilled orders increased $3.7 billion or 0.6% to $620.8 billion. Inventories increased $1.0 billion or 0.6% to $175.2 billion.