United States: ISM manufacturing index falls to lowest level in more than six years
December 1, 2015
In November, the ISM manufacturing index came in at 48.6%, which was below the 50.1% recorded in October and marked the lowest reading since June 2009, when the U.S economy was mired in a recession. The result contrasted market expectations of 50.5%. The index has weakened for five consecutive months and is now below the 50.0% threshold, which distinguishes between contraction and expansion in the manufacturing sector, for the first time since November 2012.
The index was mainly dragged down by falling production and new orders, which reached levels not seen since 2012. Inventories also diminished while supplier delivery times were broadly unchanged. On a positive note, employment reached a four-month high.
Author: Carl Kelly, Economist