Manufacturing Declines for Fourth Consecutive Month

The National Association of Purchasing Management reported that the manufacturing industry declined in November for the fourth consecutive month. The November PMI fell to 47.7%, below the consensus expectation of 48.5%, and the lowest level in two years. However, November marked the overall economy's 115th consec

The National Association of Purchasing Management reported that the manufacturing industry declined in November for the fourth consecutive month. The November PMI fell to 47.7%, below the consensus expectation of 48.5%, and the lowest level in two years. However, November marked the overall economy's 115th consecutive month of growth.

According to Norbert J. Ore, C.P.M., chair of the National Association of Purchasing Management's Manufacturing Business Survey Committee and vice president, purchasing and strategic alliances, Chesapeake Display and Packaging Company. "The manufacturing sector failed to grow in November for the fourth consecutive month. The trend of contraction in manufacturing was accentuated by the fall of November’s Production Index to below the 50 mark for the second consecutive month. New Orders continue to be a concern as that Index has failed to grow since June. New Export Orders fell below 50 for the second straight month, enhancing concerns about a global slowdown. If there is a bright spot in this month’s report, it is that the rate of decline in Production decelerated, indicating only a small decline in production when compared to October."

NAPM's Production Index decreased 01.6% to 47.7 in november. The New Order Index rose 0.4% to 48.4 while the Backlog of Orders Index registered 42, indicating small backlogs for the seventh consecutive month. 

Among other sub-indexes, prices paid rose by 0.1% in November to 56.6 from October's 56.5, supplier deliveries registered 49.2% indicating faster deliveries in November, and employment decreased 1.9% to 46.0, down from 47.9 in October.

Series November October
PMI 47.7 48.3
Production 49.6 48.4
New Orders 48.4 48.0
Backlog of Orders 42.0 41.0
Supplier Deliveries 49.2 51.4
Inventories 42.2 45.4
Employment 46.0 47.9
Prices 56.6 56.5
New Export Orders 48.7 48.3
Imports 53.2 51.8

The next NAPM Report on Business will be released on January 2, 2001

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