The U.S manufacturing sector has been contracting for four consecutive months amid the U.S.-Sino trade turbulence and weakening business conditions. Per the Institute for Supply Management’s latest report, the U.S Purchasing Managers’ Index (PMI) dipped further to 48.1% in November 2019 from the October reading of 48.3%.
The PMI reading had been showing signs of deceleration since this April but had remained above 50, which denotes expansion. However, it declined to 49.1% in August, which marked an end to the 35 consecutive months of expansion. The index has steadfastly remained below 50 since then. In fact, in September, the PMI index hit the lowest point in a decade, at 47.8%.
Of the 18 manufacturing industries, only five reported growth in November. The New Orders Index slumped to 47.2% in November from 49.1% in October. Production Index came in at 49.1% in November compared with the 46.2% registered in October. Employment Index was 46.6% in November, down from October’s 47.7%. Notably, the new orders index, production index and employment index displayed contraction for the fourth consecutive month.
Despite the slowdown over the past few months, the PMI has averaged 51.8% over the last 12 months, ranging from a low of 47.8% to a high of 56.6%.
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