Key Points:

  • The Manufacturing Purchasing Managers Index (PMI) captures business conditions in the manufacturing sector.
  • Readings above 50 imply the economy is expanding while readings below 50 imply economic contraction.
  • Manufacturing PMI decreased to 58.3 in November from 59.1 in October, an 11-month low.
  • November’s reading was the second weakest rise in production over the past 14 months.
  • The 0.8 loss exceeded the consensus among economists of no change from October.
  • Longer lead times, supplier shortages and higher energy prices meanwhile pushed the rate of cost inflation to a fresh series high.
  • Employment increased further in November, but the rate of job creation slowed to only a modest pace, as labor shortages stymied efforts to fill current vacancies.
  • The Right Facts will continue to monitor manufacturing PMI.