US November ISM Manufacturing PMI Contracts for the Ninth Consecutive Month

Jinse Finance reported that U.S. manufacturing remained in contraction territory for the ninth consecutive month in November, as factories faced the dual pressures of declining orders and rising raw material costs amid the ongoing drag from import tariffs. Data released by the Institute for Supply Management (ISM) on Monday showed that the manufacturing PMI fell to 48.2 in November from 48.7 in October. A reading below the 50 threshold indicates contraction in the manufacturing sector, which accounts for 10.1% of the total U.S. economy. However, the index remains above 42.3—ISM noted that, in the long term, this level is consistent with overall economic expansion. The forward-looking new orders sub-index in the ISM survey dropped from 49.4 in October to 47.4 in November, marking nine out of the past ten months in contraction. Tariffs have pushed up the prices of some goods, dampening demand. Unfilled orders continued to shrink, though exports showed slight improvement. Weak demand means supply chain pressures have eased, with the supplier deliveries index falling from 54.2 in October to 49.3, and a reading below 50 indicates faster delivery times. Despite weak factory orders, manufacturers paid higher prices for raw materials last month, suggesting that inflation may remain elevated for some time.