US ISM manufacturing rose to 59.3 in November, up from 57.7 and beat expectation of 57.5. Price paid dropped to 60.7, down from 71.6 and missed expectation of 70.5. Employment component rose 1.6 to 58.4.
ISM noted that:
- Comments from the panel reflect continued expanding business strength.
- Demand remains strong, with the New Orders Index rebounding to above 60 percent, the Customers’ Inventories Index declining and remaining too low, and the Backlog of Orders Index steady.
- Consumption strengthened, with production and employment continuing to expand, both at higher levels compared to October.
- Inputs — expressed as supplier deliveries, inventories and imports — gained as a result of inventory growth.
- Supplier delivery easing improved factory consumption as well as inventory growth, and import expansion was relatively stable.
- Lead-time extensions continue, while steel and aluminum prices are declining.
- Supplier labor issues and transportation difficulties are at more manageable levels, but they continue to limit production potential.
