The overall economy grew for the sixty-sixth straight time, while the manufacturing sector expanded for the eighteenth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index slid to 58.7 in November from 59.0 in October.
Economists polled by Thomson Reuters predicted the index would slip to 58.0.
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 dropped to 44.5 from 53.5. The employment index fell to 54.9 from 55.5.
The production index slipped to 64.4 from 64.8, the new orders index grew to 66.0 from 65.8; the supplier deliveries index climbed to 56.8 from 56.2; the export orders index increased to 55.0 from 51.5; and the imports index gained to 56.0 from 54.5.
The inventories index decreased to 51.5 from 52.5; the customers' inventories index rose to 50.0 from 48.0; and backlog of orders jumped to 55.0 from 53.0.
Respondents' comments included:
"The Holiday Season continues to exceed expectations. Customers are generally optimistic for future sales growth." (Food, Beverage & Tobacco Products)
"Continued strong demand. Deliveries through the West Coast are delayed due to a number of factors." (Fabricated Metal Products)
"We have seen continued growth in transportation equipment. Slowdowns and threats of strike of West Coast longshoreman weigh heavily on U.S. operations." (Transportation Equipment)
"Business continues to be stronger than last year." (Furniture & Related Products)
"Improvement in defense spending and manufacturing." (Computer & Electronic Products)
"West Coast port longshoreman slowdown is affecting business with longer lead times." (Chemical Products)
"We continue to hire people. People are also leaving to take other jobs indicating the job market is starting to improve for manufacturing." (Electrical Equipment, Appliances & Components)
"Market has remained strong going into year-end." (Wood Products)
"Order intake has been substantial, resulting in a very healthy backlog. The packaging automation requirements in the food and beverage market are robust." (Machinery)
"Demand remains strong for new orders." (Miscellaneous Manufacturing)
