By Kasra Kangarloo
WASHINGTON (MNI) – The U.S. manufacturing sector continued its
modest rate of in November, with Wednesday’s report by the Institute of
Supply Managers expected to show a slight decline in activity.
According to a survey of economists by Market News International,
the headline index will fall from 56.9 to 56.7, which would still
indicate an overall expansion in activity. An index reading above 50
indicates expanding activity, while an index below 50 indicates
contraction.
The five regional reports on manufacturing activity already
released for November suggest a mixed reading for the sector.
The survey conducted by the Philadelphia Federal Reserve showed an
unexpected jump in manufacturing activity, with the index moving to 22.5
from 1.0 in October. Surveys conducted by the Federal Reserve Banks of
Richmond and Dallas also showed improvement.
The survey conducted by the New York Federal Reserve, by contrast,
showed an index of -11.14, plunging from 14 in October. The drop was led
by heavy losses in the new orders and shipments indexes, an indication
of waning demand.
According to Sean Incremona, economist at 4Cast Ltd., though
month-to-month ISM data has been volatile, the trend has tilted
gradually upward. “The regional manufacturing surveys were mixed, which
goes in line with month-to-month volatility,” he said in a telephone
interview.
Improvement in the manufacturing sector has slowed in the last
year, as the headline ISM figure has mostly remained between 50 and 60,
a relatively modest range, since August 2009.
The sectors sluggish recovery reflects the trend in the broader
economy. The unemployment rate has been above 9.0% since May, 2009, and
the housing market has struggled to regain lost demand.
— Kasra Kangarloo is a reporter for Need to Know News in Washington
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$]