S&P Global PMI data, released November 23, showed continued contraction in the US manufacturing sector: The S&P Global Manufacturing PMI fell to 47.6 from 50.4 in October, well under the market expectations of 50. “Contributing to the decrease in the headline figure,” explained S&P Global, “was a renewed fall in output and a sharper decline in new orders…The overall fall in activity was the second-fastest since May 2020 as inflation, rising borrowing costs and economic uncertainty weighed on demand.”
The drop brought the US manufacturing sector to its lowest level in 30 months. And the contraction was echoed in the services and composite PMI, marking the fifth straight month of decline for the composite figure.
The US manufacturing PMI measures the activity level of purchasing managers in the manufacturing sector. Readings above 50 indicate expansion in the sector; below 50 indicate contraction.
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