Manufacturing has peaked this cycle; 8 of 11 ISM components in contraction - Mish Talk

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ISM chart and details below courtesy of Department of Supply Management.

Please consider November 2022 production ISM.^® Report business.^®

“After 29 consecutive months of expansion, the manufacturing contract was signed in November. Panelists’ companies are still managing employment fairly, except for October 2022. Month-on-month supplier delivery performance was the best since February 2012, when it registered 47 percent, while delivery times were down about 9 percent from the previous month. approximately 18; Percentage in the last four months. Managing total head count and supply chain inventory are key goals. orders, Prices and delivery times are now dropping rapidly. This should bring buyers and sellers back to the table to replenish order books based on 2023 business plans.

Key details

“November Manufacturing PMI^® 49 percent registered; That was 1.2 percent lower than the 50.2 percent recorded in October. Regarding the overall economy, This figure indicates expansion for 30 consecutive months after contraction in April and May 2020.
Manufacturing PMI^® The figure was the lowest since May 2020, when it registered 43.5 percent.
The New Orders Index remained in declining territory at 47.2 percent, 2 percentage points lower than the 49.2 percent recorded in October.
The manufacturing index reading of 51.5 percent was down 0.8 percent compared to October’s 52.3 percent.
The price index registered 43 percent; It was down 3.6 percent compared to 46.6 percent in October. This is the lowest reading index since May 2020 (40.8 percent).
The orders index registered 40 percent, 5.3 percentage points lower than the 45.3 percent reading in October.
The employment index returned to contraction territory (48.4 percent, down 1.6 percent) after being unchanged at 50 percent in October.
The Supplier Deliveries Index reading of 47.2 percent was 0.4 percent higher than the October figure of 46.8 percent. Except for last month, the Supplier Deliveries Index has not been at this level since February 2012 (47 percent).
The Inventories Index registered 50.9 percent, down 1.6 percent from October’s reading of 52.5 percent.
The New Export Orders Index reading of 48.4 percent was up 1.9 percent compared to October’s figure of 46.5 percent.
The import index is 46.6 percent; It fell 4.2 percent below October’s reading of 50.8 percent.