WASHINGTON, Dec. 2 (Xinhua) -- Economic activity in the U.S. manufacturing sector contracted in November for the eighth month in a row, the Institute for Supply Management (ISM) said Monday.
The U.S. Manufacturing Purchasing Managers' Index (PMI) stood at 48.4 percent in November, up 1.9 percentage points from the 46.5 percent recorded in October. Any reading below 50 percent indicates the manufacturing sector is generally contracting.
"Demand continues to be weak but may be moderating, output declined again, and inputs stayed accommodative," Timothy Fiore, chair of the ISM's manufacturing business survey committee, said in a statement.
One business executive in the Food, Beverage & Tobacco Products industry commented, "Inflation, even after easing, continues to impact demand. Consumers are looking for value, and purchasing behaviors are changing as many shoppers reduce consumption, causing softer volume."
The Prices Index, which tracks inflationary pressures, remained in expansion territory, though it dropped to 50.3 percent in November, down 4.5 percentage points from October.
In the Chemical Products industry, an executive noted, "High mortgage rates continue to hamper demand for new housing construction, which is a key market for adhesives and sealants."
A positive development was the New Orders Index, which returned to expansion for the first time in seven months, registering 50.4 percent - an increase of 3.3 percentage points from October. The Employment Index also improved, rising by 3.7 percentage points to 48.1 percent.
"Competition for qualified technical labor is a constraint on operational throughput," noted a business executive from the Computer & Electronic Products industry.
