The US manufacturing sector expanded in November for the fourth consecutive month but the pace of growth slowed, and the overall economy grew for the seventh consecutive month, according to America's supply executives in the latest Manufacturing ISM Report On Business.

Norbert J. Ore, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee commented: "The manufacturing sector grew for the fourth consecutive month in November. While the rate of growth slowed when compared to October, the signs are still encouraging for continuing growth as both new orders and production are still at very positive levels, and the Prices Index fell 10 points, signaling less inflationary pressure on manufacturers' costs. Overall, the recovery in manufacturing is continuing, but many are still struggling based on their comments."

In November, 12 of the 18 manufacturing industries reported growth. The industries - - listed in order - - are: Apparel, Leather & Allied Products; Printing & Related Support Activities; Petroleum & Coal Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Transportation Equipment; Chemical Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; Fabricated Metal Products; and Machinery. The five industries reporting contraction in November are: Wood Products; Furniture & Related Products; Nonmetallic Mineral Products; Primary Metals; and Plastics & Rubber Products.

PMI

Manufacturing growth decelerated in November as the PMI (Purchasing Managers' Index) registered 53.6, a decrease of 2.1 percentage points when compared to October's reading of 55.7. This continues the recovery in the sector, but at a slower rate of growth. A reading above 50 indicates that the manufacturing economy is generally expanding; below 50 indicates that it is generally contracting.

A PMI in excess of 41.2, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the seventh consecutive month in the overall economy, as well as expansion in the manufacturing sector for the fourth consecutive month. Ore said: "The past relationship between the PMI and the overall economy indicates that the average PMI for January through November (45.4) corresponds to a 1.3% increase in real gross domestic product (GDP). However, if the PMI for November (53.6%) is annualized, it corresponds to a 3.9% increase in real GDP annually."