ISM Manufacturing Index: The Institute for Supply Management’s manufacturing index moved up 1.9% (m/m) to 48.4 for November 2024; this value is weaker than the forecast of 50. The new orders sub-index scored at 50.4. The reading pointed to another albeit softer contraction in the manufacturing sector. New orders rebounded after seven months of contraction and production, employment and inventories contracted less.

The ISM manufacturing index is based on surveys of 300 purchasing managers in 17 industries. The survey is a diffusion index calculated as a percent of responses. A value of 50 is neutral, while less than 50 denotes contracting manufacturing activity and greater than 50 denotes expanding activity.

Figure 1 breaks down the composite index and sub-indexes. The backlogs sub-index was 41.8 this month, while the inventories sub-index was 48.1.

The three manufacturing industries reporting growth in November are: Food, Beverage & Tobacco Products; Computer & Electronic Products; and Electrical Equipment, Appliances & Components. The 11 industries reporting contraction in November — in the following order — are: Printing & Related Support Activities; Plastics & Rubber Products; Chemical Products; Paper Products; Transportation Equipment; Fabricated Metal Products; Furniture & Related Products; Machinery; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Primary Metals.

“Business is slowing as customers destock and appear uncertain about near-term demand. Preliminary forecast for 2025 is down significantly; we hope to see improvements now that we are beyond U.S. election uncertainties.” [Fabricated Metal Products]