US manufacturing hits 26-year low: ISM

AFP | December 2, 2008

US manufacturing slumped to a 26-year low in November, highlighting the abrupt downturn in the world’s biggest economy, a survey showed Monday.
The Institute of Supply Management said its manufacturing index slumped 2.7 points to 36.2 percent, far below the 50 percent level that separates expansion and contraction. The level was the lowest since May 1982.

New orders fell even further to a level of 27.9 percent, suggesting the worst may not be over yet for the sector.

"When comparing November to October, the (index) indicates a continuing rapid rate of contraction in manufacturing," said ISM survey chief Norbert Ore.

"New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980 when the index registered 24.2 percent."

"The manufacturing recession deepened further in November," said economist Peter Kretzmer at Bank of America.

"Orders plummeted at an increasing pace, and input prices continued their accelerating pace of decline. Both import and export orders also continued to fall."

  Print this page.

Comment Rules

Comments are closed.