IHS Markit US manufacturing PMI drops to 53.9 in November
US manufacturing activity slowed a little less than expected in November, according to figures released on Friday.
The IHS Markit purchasing managers' index fell to 53.9 in November from 54.6 in October but was a touch ahead of analysts' expectations for a drop to 53.8.
A reading above 50.0 indicates expansion while a reading below indicates contraction.
Goods producers increased their output at a rate only slightly below that seen in October. Anecdotal evidence suggested that the rise was due to greater order volumes and robust client demand. Meanwhile, new orders received by manufacturers rose at the second-fastest pace since March in November. Panellists cited more favourable demand conditions and highlighted more orders from domestic and foreign clients.
Chief business economist Chris Williamson said: "US manufacturers reported further solid growth in November. The rate of expansion settled slightly after October’s rebound from the hurricanes, but still leaves the sector on course for its best quarter since the opening months of 2015.
"What’s especially encouraging is that growth is being led by producers of business equipment and machinery, indicating investment spending is on the rise."