U.s. manufacturing shrinks in november
Worries about automatic tax increases in the New Year cut demand for factory orders and manufacturing jobs to its lowest point since July 2009. Business Deaths Life & Arts Sports B6-9 B4-5 D1 C1
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WASHINGTON — U.S. manufacturing shrank in November to its weakest level since July 2009, the first month after the recession officially ended. Worries about automatic tax increases in the New Year cut demand for factory orders and manufacturing jobs.
The Institute for Supply Management said Monday that its index of manufacturing conditions fell to a reading of 49.5. That’s down from 51.7 in October.
Any reading above 50 signals expansion, while readings below 50 indicate contraction. Manufacturing grew in October for only the second time since May. The ISM is a trade group of purchasing managers.
A measure of new orders fell to its lowest level since August, a sign that production could slow in the coming months.
“Today’s report suggests that the manufacturing sector is likely to remain a weak point in the recovery for a few months yet,” Jeremy Lawson, an economist at BNP Paribas, said in a note to clients.
On Wall Street on Monday, stocks closed lower after the weak manufacturing report heightened concern that fiscal deadlock in Washington is hurting the economy.
The Dow Jones industrial average fell 59 points to close at 12,965. The Standard and Poor’s 500 dropped 6 points
Employees pour molten steel into castings for church bells at the Verdin Corp. production facility in Cincinnati last month. U.S. manufacturing fell to its weakest level in more than three years last month, according to data from the Institute for Supply Management.