·
The Institute of Supply Management (ISM) reported that the November
Composite Index of activity in the manufacturing sector fell one point
to 58.1. The decline about matched Consensus expectations and the
average of the last three months, at 58.9, was the highest in over a
year.
· During the last twenty years there has been a 64% correlation between the level of the Composite Index and the three month growth in factory sector industrial production.
· As during October, three of the index's five components fell last month. New orders fell another 1.9 points but remained well up from the May low. The moderate decline in production also left the level up from the Spring low and the pace of supplier deliveries quickened to the fastest pace since August .
· Job creation in the factory sector improved to the best level since February with a 1.6 point gain. During the last twenty years there has been a 67% correlation between the level of the ISM Employment Index and the three month growth in factory sector employment.
· Pricing power in the factory sector eased to the lowest level since August with a ten point m/m decline.