Despite the U.S manufacturing index decreasing slightly from 59% in October to 58.7% in November, according to the Institute for Supply Management, the decrease was not as significant as originally forecasted. Analysts had predicted an index of 57.8%. The current index remains near a three-year high.
U.S. manufacturing continued to outpace the other large economies of the world. The Chinese manufacturing index fell to a six-month low in November. The indexes for Germany, France and Italy also fell in November.
November represents that 18th consecutive month that the U.S. manufacturing sector expanded. An index above 50% indicates sector expansion. The expansion occurred primarily due to increases in new orders and export orders. New orders index expanded again in November, reaching its highest levels since August, at 66%. Given the decline in other global economies, the increase in exports from 51.5% in October to 55% in November is a pleasant surprise.
Manufacturing appears poised to remain strong as we near year-end and enter the busy holiday season.
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