Product List
Contact Us
Address: Changle Industrial
Development Zone,Jingshan
Town,
Yuhang District,Hangzhou,
Zhejiang,
China
ZipCode: 311116
Tel : 86-571-88607728
Fax: 86-571-88607727
Email: chn-ak@hotmail.com
Friend Link
U.S. Manufacturing Expands in November
2009-12-14
U.S. Manufacturing Expands in November
By Ilya Leybovich
U.S. manufacturing expanded for the fourth consecutive month in November, positioning the sector at the forefront of the ongoing economic recovery, according to new data.
The overall United States economy has progressed steadily into recovery for the greater part of the last year, yet some economic indicators remain mixed, including sluggish consumer demand, the record-high level of unemployment and what many experts consider too-low inventory levels that may be hindering long-term growth. Despite these challenges, the nation's manufacturing sector continued to expand through November, albeit at a slower rate than in previous months.
According to the Institute for Supply Management's (ISM) latest monthly manufacturing Report on Business, released today, the nation's manufacturing grew for the fourth consecutive month in November, reflecting the trend of the overall U.S. economy, which expanded for the seventh straight month.
The ISM purchasing managers' index (PMI), a key indicator of the factory sector, fell to 53.6 in November, a 2.1 percentage-point decrease from the 55.7 recorded in October but still above the 50-point reading that indicates overall growth.
Although the rate of growth appears to have slowed, the data show that more manufacturing firms are reporting growth than the number reporting contraction.
While many experts were predicting a slowdown in the strong monthly growth of the manufacturing sector, which registered its highest reading in nearly three years in October, the current drop exceeded expectations. Economists surveyed by both MarketWatch and Bloomberg.com anticipated the PMI to drop to 55 in November, 1.4 percent higher than was reported.
"While the rate of growth slowed when compared to October, the signs are still encouraging for continuing growth as both new orders and production are still at very positive levels, and the Prices Index fell 10 points, signaling less inflationary pressure on manufacturers' costs," Norbert J. Ore, chair of ISM's Manufacturing Business Survey Committee, said in the report.
According to the report, 12 of the 18 manufacturing industries recorded growth last month: apparel; printing; petroleum and coal products; miscellaneous manufacturing; electrical equipment; transportation equipment; chemical products; computer and electronic products; food and beverage products; paper products; fabricated metal products; and machinery.
New orders increased at a faster pace in November, rising to 60.3 on the manufacturing index, up from 58.5 the previous month. Production, deliveries and employment continued to grow as well, though at a slower rate than in October.
Prices continued to increase for the fifth month, although at a decreasing rate, the ISM report found, while manufacturers' inventories continued to contract for the 43rd consecutive month and at an increasing rate from the previous reporting period.
Inventory conditions remain a concern, as they are closely tied to gross domestic product (GDP), reflecting demand swings and signaling broader economic growth patterns.
"Inventories are being depleted more slowly now, but that hasn't helped growth as much as economists had hoped. Inventories added 0.9 percentage point[s] to third-quarter GDP growth. But they subtracted 2.4 and 1.4 percentage points, respectively, from the first and second quarters," the Wall Street Journal notes. "If inventories soar from here, then growth will benefit. But there is little sign that is going to happen."
More positive signs for the global industrial recovery come from growth across similar manufacturing indicators in the United Kingdom, the Eurozone and China, the Associated Press reports today.
Provious News >> Report on the 11th AP Plas in Shanghai
Next News >> Part of the exhibition information of ATECH in 2010!
Next News >> Part of the exhibition information of ATECH in 2010!
English
German
Spanish
French
Italian
Portuguese
Japanese
Korean
Arabic
Russian