NEW YORK (CNN/Money) - The manufacturing sector grew at a stronger pace in November, according to the latest survey by the Institute for Supply Management, which came in better than Wall Street expectations.
The ISM index for the month was 57.8, up from a 56.8 reading in October. Any reading above 50 indicates growth in the goods producing sector of the economy, and the November report marked the 18th consecutive month of expansion.
Economists surveyed by Briefing.com were forecasting a reading of 57.
"November reverses three consecutive months in which the rate of growth had slowed," said Norbert Ore, chair of the ISM's Manufacturing Business Survey Committee. "The manufacturing sector appears poised to end the year on a strong note as the new orders index made its way back above the 60 percent mark, and the employment index picked up significant momentum."
Still while the November reading was up from October, it was lower than the previous 11 months of readings, when the index was generally in the 60's.
The survey is conducted among purchasing and supply executives at more than 400 industrial companies. The November survey found 33 percent reporting more new orders in the month, up from 27 percent in October, while those reporting fewer new orders edged up to 18 percent from 17 percent in the previous reading.
The survey also found that while those companies with more employees in November than October stayed steady at 20 percent, those reporting fewer employees fell to 9 percent from 14 percent in the previous report.
That raised the survey's employment index to 57.6 from 54.8 in October; a reading over 48 generally coincides with growth in manufacturing employment in the government's monthly jobs report, which is due out Friday.
One reason the ISM survey is closely watched by economists and investors is because it is one of the earliest reports on the previous month's economic activity. Its report on service sector growth is due out Friday.
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