Nov. ISM Index at 36.2, Down From 38.9 in Oct.

The overall economy failed to grow for the second straight month after 83 months of expansion, while the manufacturing sector was contracted for the fourth month in a row, the Institute for Supply Management reported yesterday.

According to the ISM’s monthly report on business, the ISM index dipped to 36.2 in November from 38.9 in October.

Economists polled by Thomson Reuters predicted the index would slip to 38.4.

“When comparing November to October, the [purchasing managers index]  indicates a continuing rapid rate of contraction in manufacturing,” said Norbert J. Ore, chairman of the ISM’s manufacturing business survey committee. “New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980, when the index registered 24.2%. Order backlogs have fallen to the lowest level since ISM began tracking the backlog of orders index in January 1993. The prices index at 25.5% indicates that commodity prices continue to decline at a rapid rate. This is the lowest reading for the index since May 1949 when it registered 20.1%.”

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