The US ISM manufacturing index contracted for the first time since May 2020 in November, following a third consecutive month of reduced orders which weakened production.
The indicator drawn up by the Institute for Supply Management fell to 49 points from 50.2 in the previous month, below the Bloomberg consensus (49.7 points) and, for the first time since the lockdowns, below the 50 threshold points separating expansion and contraction.
“The November composite index reading reflects companies’ readiness for future production reductions,” Timothy Fiore, chairman of ISM’s Manufacturing Business Survey Committee, said in a statement.
The overall indicator was further weighed down by the contraction in employment in the sector, as producers have to cope with both the labor shortage and the moderation in demand.