TEMPE, Ariz. -- According to the U.S. Institute for Supply Management, the manufacturing-sector activity grew in November for the 18th straight month. The Institute's Manufacturing Report On Business shows significant upward pressure on prices, too-low inventories, a decrease in order backlogs and a decrease in exports.
Respondents to the monthly survey said manufacturers are seeing strong sales but commodity prices are cutting into profits.
November's purchasing managers' index for November rose 1 point above October's 56.8 percent reading. A reading above 50 percent indicates the manufacturing economy is expanding readings below 50 percent indicate it is contracting.
The new-orders index rose 3.2 percentage points to 61.5 percent in November from 58.3 percent in October. The production index fell 1.9 points from 58.9 percent in October to 57 percent in November. The employment index rose 2.8 points from 54.8 percent in October to 57.6 percent in November.
The orders backlog index fell 1.5 points from 49 percent in October to 47.5 percent while the inventories index rose 50.7 percent, up from 48.2 percent in October.
Industries reporting growth in November include food, textiles, tobacco, printing and publishing, apparel, transportation/equipment, chemicals, instruments/photo equipment, chemicals, industrial and commercial equipment and computers, eletronic components, furniture, wood/wood products; fabricated metals, and rubber/plastic products.
Copyright 2004 by United Press International
