Economic activity in the manufacturing sector contracted in November for the first time in 36 months, while the overall economy grew for the 78th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing Business Survey Committee states, “The past relationship between the PMI and the overall economy indicates that the average PMI for January through November (51.6 percent) corresponds to a 2.7 percent increase in real gross domestic product (GDP) on an annualized basis. In addition, if the PMI for November (48.6 percent) is annualized, it corresponds to a 1.7 percent increase in real GDP annually.”

A PMI above 43.1 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the November PMI indicates growth for the 78th consecutive month in the overall economy, while indicating contraction in the manufacturing sector for the first time in 36 months.

By: DocMemory
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