The U.S. manufacturing sector showed signs of recovery in November, as new orders expanded for the first time in eight months and rising confidence spurred companies to add staff, according to data from the Institute for Supply Management (ISM) and S&P Global.
Although both surveys indicated ongoing contraction in the sector, the slowdown was less severe than expected, driven by easing inflation and optimism over pro-business policies expected from President-elect Donald Trump.
The ISM Manufacturing Purchasing Managers’ Index (PMI), released on Dec. 2, rose to 48.4 in November from 46.5 in October, the highest level in five months. Although still below the 50 threshold that separates contraction from expansion, it beat market expectations for a reading of 47.5, buoyed by a slight uptick in demand as input price growth slowed sharply.
The new orders index climbed by 3.3 points to 50.4, indicating growth, per the ISM report. New export orders saw a 3.2-point improvement from October, although at 48.7 they remained in contraction territory.
“The New Orders Index returned to expansion, albeit weakly, after seven months of contraction,” Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, said in a statement. […]
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