U.s. man­u­fac­tur­ing shrinks in novem­ber

Austin American-Statesman - - FRONT PAGE -

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

TY WRIGHT / BLOOMBERG

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.

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