The ISM Manufacturing Index, which is a national measure of manufacturing, fell from 56.9 in October to 56.6 in November and remained above 50, which marks the line between expansion and contraction, for the 19th consecutive month.
"The manufacturing sector grew during November, with both new orders and production continuing to expand. With the PMI at 56.6 percent, November's rate of growth is the second fastest in the last six months. Exports and imports continue to support expansion in the sector,” the chair of the Institute for Supply Management said.
He added, “Prices moderated slightly during the month, but comments from the respondents express concerns with regard to pricing pressures.”
Manufacturing has been the bright spot in what has otherwise been an uneven and dull economic recovery so far.
However, recent indications suggest that the uneven recovery is beginning to broaden.
ADP report reveals favorable job trend
ADP announced this morning that private-sector employment increased by 93,000 in November, noting that the report suggests and acceleration in job creation and that “the nation’s employment situation is brightening somewhat.”
October’s originally reported gain of 43,000 was revised upward to 82,000, adding to the positive flavor of the release.
The best increase in three years, however, is not enough to bring down the unemployment rate, as ADP was quick to point out that the unemployment rate will likely hold above 9% for all of 2011.
Still, the report, which front runs the government’s labor report by two days, has lagged well behind the nonfarm payroll number for the entire year, and November’s relatively upbeat number is suggesting that Friday’s labor report might pleasantly surprise to the upside.
At a minimum, last month’s rise is signaling that the recovery is beginning to pick up steam, as companies begin to fill vacancies needed to take advantage of improving markets.
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