ISM Index Rises to 57.3 in November

The overall economy grew for the fifty-fourth straight time, while the manufacturing sector expanded for the sixth consecutive month, the Institute for Supply Management reported Monday.

According to the ISM's monthly report on business, the ISM index climbed to 57.3 in November from 56.4 in October.

Economists polled by Thomson Reuters predicted the index would fall to 55.0.

An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.

The prices paid index decreased to 52.5 from 55.5. The employment index grew to 56.5 from 53.2 the prior month.

The production index climbed to 62.8 from 60.8, the new orders index rose to 63.6 from 60.6; the supplier deliveries index slid to 53.2 from 54.7; the export orders index jumped to 59.5 from 57.0; and the imports index fell to 55.0 from 55.5.

The inventories index decreased to 50.5 from 52.5; the customers' inventories index dipped to 45.0 from 47.0; and backlog of orders grew to 54.0 from 51.5.

Respondents' comments included:

"Seasonal demand has not decreased at the typical pace." (Primary Metals)

"Incoming order rate remaining strong." (Fabricated Metal Products)

"Outlook for the remainder of the year and into 2014 is trending positive." (Chemical Products)

"Overall business climate is good. Business is steady." (Transportation Equipment)

"Sequestration and cutbacks in defense spending continue to impact business." (Computer &  Electronic Products)

"Market continues to be stronger than normal for this time of year." (Wood Products)

"Getting much busier toward the end of the year." (Furniture & Related Products)

"Seeing consistent uptick in demand." (Food, Beverage & Tobacco Products)

"Federal debt, deficit and inefficiency are causing a level of caution and uncertainty." (Machinery)

"Ordering for 2014 seems to be increasing in comparison to the past six months." (Miscellaneous   Manufacturing)

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