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CPSM1 Foundation of Supply Management

This course focuses on management and improvement of supply chain processes and performance. It will be valuable for students who would like to pursue a career in consulting or take a position in operations, marketing or finance functions in a manufacturing or distribution firm. We explore important supply chain metrics, primary tradeoffs in making supply chain decisions, and basic tools for effective and efficient supply chain management, production planning and inventory control, order fulfillment and supply chain coordination. We will also investigate Topics such as global supply chain design, logistics, and outsourcing, several other recent supply chain innovations.
The class format includes lectures, case discussions, guest speakers, and simulation games. The content covers both quantitative and qualitative materials. The cases will feature high-tech companies as well as firms in more traditional industries such as apparel and manufacturing.

Institute for Supply Management® (ISM®) is the first and leading not-for-profit professional supply management organization worldwide. Its 47,000 members in more than 90 countries around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 by practitioners, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM empowers and leads the profession through the ISM® Report On Business®, its highly-regarded certification and training programs, corporate services, events and the ISM® Mastery Model®. The ISM® Report On Business®, Manufacturing and Non-Manufacturing, are two of the most reliable economic indicators available, providing guidance to supply management professionals, economists, analysts, and government and business leaders.

CPSM Certification Overview
The CPSM is globally recognized as the gold standard of excellence for supply management professionals, in both the manufacturing and non-manufacturing sectors. The designation is transportable across industries, job roles and regions, providing designation holders with flexibility and mobility. The CPSM is for forward-thinking supply management professionals who desire to demonstrate a broad understanding of the components of the profession. The program emphasizes the major competencies of supply management. Those earning the CPSM will attain a greater understanding of end-to-end supply management and be better positioned to positively impact their organization.

CPSM Eligibility Requirements
Earning a CPSM designation requires you to take and pass three exams, which can be taken in any order:
• Supply Management Core
• Supply Management Integration
• Leadership and Transformation in Supply Management
Candidates must have three years of full-time, professional supply management experience (nonclerical and nonsupport) with a bachelors degree from a regionally accredited institution or international equivalent or five years of full-time, professional supply management experience (nonclerical and nonsupport) without a qualified bachelors degree.
All applicable experience must be in a professional position where the primary function is supply management. Professional experience is usually defined as positions with decision-making authority and where independent judgement is exercised. ISM does not require a candidate to work in all areas of supply management or be in a management position. Proof of work experience is not required from those with a current C.P.M. certification. ISM will evaluate work experience for candidates unsure if their current or previous positions are considered applicable. The evaluation is optional, and there is a nominal charge. The work-experience evaluation process allows a candidate to submit work experience documentation prior to taking exams. ISM will return an evaluation to the candidate indicating if the experience is acceptable. Candidates with acceptable experience should submit the evaluation with their original certification application after they have passed the exams.

- Assess stakeholder needs and organize into sourcing plans 5
- Analyze and advise on feasibility of internal customer requests 3
- Analyze potential sources of products or services 7
- Determine methods to process requirements for goods or services based on cost, 5 timing, existing contracts and competitive bidding, as appropriate
- Conduct analyses to develop insourcing or outsourcing strategy 5
- Identify and implement technologies to support supply management 4
- Leverage spend through the identification, development and execution of 5 sourcing strategies
- Implement strategic sourcing plans aligned with organizational and stakeholder objectives 5
- Prepare solicitations for competitive bids, quotations and proposals with 6 pertinent specifications, terms and conditions
- Evaluate competitive offerings to identify the overall best offer for a product or service 5
CATEGORY MANAGEMENT
- Create a category management plan to meet the organizations key objectives 5
- Execute a category management plan 5
NEGOTIATION
- Prepare negotiation plan that aligns with organizational objectives 5
- Prepare and develop strategies and tactics for negotiations 4
- Lead, conduct and support negotiations with suppliers 5
LEGAL AND CONTRACTUAL
- Manage the preparation of contracts/purchase orders 5
- Award contracts to suppliers 3
- Administer contracts and/or purchase orders from award to completion or termination 5
- Perform or obtain legal review of contracts and other supply management documents 4
- Generate and follow supply management processes to ensure legal compliance 4
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
SUPPLIER RELATIONSHIP MANAGEMENT
- Develop provider qualification plans to assure components, materials 4 and suppliers meet specified requirements
- Develop and manage effective relationships with suppliers 7
- Conduct provider performance evaluations 5
- Conduct regular business reviews with suppliers 4
- Identify opportunities and benefits for rationalizing the supply base 4
- Identify opportunities to drive provider innovation 3
- Develop and implement provider exit strategies 3
- Review provider performance against negotiated service level agreements (SLAs) 4
- Resolve invoice and payment problems 2
- Act as a liaison between suppliers and functional areas to ensure accurate 4 information, documentation and product flow
- Work with suppliers to identify constraints and implement value-added processes 3
COST AND PRICE MANAGEMENT
- Develop cost management program strategies for purchases 5
- Perform cost/benefit analyses 4
- Conduct spend analysis to determine strategies for specific categories 5
- Track and validate cost savings and cost avoidance 4
FINANCIAL ANALYSIS
- Prepare and/or administer a supply management department budget 3
- Develop financing strategies for purchases 3
- Verify that sufficient reporting exists 3
TOTAL 180 (including 15 unscored*)
* Included are 15 statistical data research questions which are unscored (not included in your final test score)

Supply Management Integration Exam
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
SUPPLY CHAIN STRATEGY
- Develop and/or implement a material or service standardization program 5
- Implement requirements planning to align supply management activities 7 with organizational strategy
- Implement operations planning, scheduling and inventory control processes 6 to ensure optimum use of resources
- Structure the supply chain in support of the organizations business strategy 7
SALES AND OPERATIONS PLANNING – DEMAND PLANNING
- Incorporate the use of sales, inventory and capacity forecasts in the planning 6 of materials production to better meet strategic objectives and goals
- Conduct demand planning 4
SALES AND OPERATIONS PLANNING – FORECASTING
- Analyze and report on market conditions, benchmarks and industry 5 trends to internal stakeholders
- Develop supply forecasts in light of economic and technological trends 5
- Plan and communicate sourcing and supply strategies based on forecasted data 6
- Manage forecasted data with suppliers 5
- Calculate and report forecast accuracy 4
SALES AND OPERATIONS – PRODUCT AND SERVICE
- Participate in new product or service development in support of marketing efforts 5
- Participate in product-service ramp-up and/or ramp-down strategies and implementation 5
- Create systems and process improvements to help the organization meet sales goals 5
QUALITY MANAGEMENT
- Develop and/or administer a provider quality certification program 4
- Develop measurements for quality improvement 4
- Implement continuous improvement processes within the supply chain 6
TASK TASK DESCRIPTION NUMBER OF QUESTIONS
LOGISTICS AND MATERIAL MANAGEMENT
- Design transportation and distribution policies and procedures to 4 ensure optimum flow of materials
- Manage transportation, invoicing and documentation functions to 4 ensure regulatory compliance
- Manage the resolution of delivery/receiving problems 4
- Analyze provider transportation costs 5
- Develop and/or implement a warehouse management system 5
- Conduct network design and optimization to support the business model, 5 increase productivity and lower operating costs
- Oversee the day-to-day operations of a warehousing function 4
- Develop and/or implement an inventory management system 5
- Coordinate and/or monitor the movement of equipment and assets within the organization 3
- Expedite/de-expedite orders 3
- Develop and/or execute plans and metrics to reduce risk of shortages 4
- Identify cost-effective packaging that meets requirements 3
- Conduct investment recovery activities for surplus/obsolete materials 4
PROJECT MANAGEMENT
- Perform project management activities 8
TOTAL 165 (including 15 unscored*)

Foundation of Supply Management
ISM Foundation download
Killexams : ISM Foundation obtain - BingNews https://killexams.com/pass4sure/exam-detail/CPSM1 Search results Killexams : ISM Foundation obtain - BingNews https://killexams.com/pass4sure/exam-detail/CPSM1 https://killexams.com/exam_list/ISM Killexams : IIT-ISM gets grant of Rs 10 Cr on its Foundation Day for research

IIT-ISM received a grant in aid of Rs 10 crore on its 97th Foundation  Day for research work. Naresh K. Vashisht, a 1967  batch alumni of  IIT -ISMand President, Omimex Group, USA,announced the grant to the institute  for setting up a Hydrogen and Carbon (CO2) Capture and Sequestration Centre.

It's worth mentioning that an innovation hub titled, Naresh Vashisht Centre for Tinkering and Innovation set up with a fund of Rs 8 Crore provided by him in 2020 is already operational in IIT (ISM) and promoting, tinkering and innovation among students, scholars. The Hydrogen and Carbon Capture and  Sequestration Centre will be the  second centre established with the help of Mr Vashisht.

Delivering an online  Foundation Day lecture on the 97th Foundation Day of   institute today  from Texas (USA)  he   said, “Students are the biggest assets of any institute as they act as brand ambassadors of the institute”.

He said, India is in a unique position with and only bright spot for the world in the present scenario and further called upon the students to carry out research on areas like, which have several industrial applications.

The day also witnessed the announcement of funds by different alumni and alumni chapters of IIT -ISM. The Kolkata Chapter of IIT (ISM) Alumni Association announced a fund of Rs one crore to institute  over the next three years till the Centenary Year Celebration scheduled in phase wise manner beginning today during which they handed over a cheque Rs 30 lakh.

A MoU exchange for Endowment Fund and launching of two online portals also took place during the occasion.

In an MoU exchange with Prof S.P. Banerjee, Former Director, IIT -ISM and  Prof R.M. Bhattarjee, Dean (International Relations & Alumni Affairs), IIT (ISM)also took part for the Endowment Fund. Prof Banerjee provided Rs 5 Lakh while Prof Bhattacharjee contributed Rs 1 lakh.

Prof Rajiv Shekhar Director, IIT (ISM) who presided over the function while addressing the gathering. Several awards were given away on the foundation  day to research scholars, students and teachers.

A campus tour for school students was also organized as part of the Foundation Day during which more than 200 students of different schools of Dhanbad visited different facilities of the Institute including the CRE, CRS and Central Library.

Fri, 09 Dec 2022 19:45:00 -0600 en text/html https://www.dailypioneer.com/2022/state-editions/iit-ism-gets-grant-of-rs-10-cr-on-its-foundation-day-for-research.html
Killexams : ISM updated to mandate web API protection

Recent data breaches have put a spotlight on web API vulnerabilities, and in what may not be a coincidence, the Australian Cyber Security Centre has added them to its influential Information Security Manual.

The latest edition of the ISM, published by the ACSC, adds a new control "to ensure clients are authenticated when calling web application programming interfaces that facilitate access to data not authorised for release into the public domain."

In addition, “A new control was added to ensure clients are authenticated when calling web application programming interfaces that facilitate modification of data.”

These controls were not present in the September edition of the ISM.

The ACSC also takes aim at what could be termed “compliance culture”, in particular a set-and-forget attitude to security controls.

Three controls have been revised to make it clear that they should be actively maintained.

  • Overseeing cyber security awareness raising: “The existing control relating to overseeing the development and operation of a cyber security awareness raising program was amended to ensure it is also maintained.”
  • Trusted insider program: “The existing control relating to the development and implementation of a trusted insider program was amended to ensure it is also maintained.”
  • 33 different controls relating to documentation were updated: “Existing controls relating to the development and implementation of cyber security documentation were amended to ensure documentation is maintained throughout its lifetime”.

Another aspect of compliance culture, strategies that exist only as documents, is also highlighted: “The existing control relating to the development and maintenance of a cyber security communications strategy was amended to ensure it is implemented (emphasis added)”.

For the first time, the ISM explicitly draws the burgeoning – and often insecure – world of the Internet of Things into its remit.

“The definition of ICT equipment was amended to explicitly state that ‘smart devices’ are considered ICT equipment and therefore all controls relating to ICT equipment equally apply to smart devices, such as smart televisions and smart fridges”, the change log notes.

The ISM is available here.

Sun, 04 Dec 2022 16:35:00 -0600 text/html https://www.itnews.com.au/news/ism-updated-to-mandate-web-api-protection-588625
Killexams : Services economy turns in strong November performance, reports ISM By ·

November services economy output turned in a solid performance, according to the new edition of the Services ISM Report on Business, which was issued today by the Institute for Supply Management (ISM).

The Services PMI—at 56.5 (a practicing of 50 or higher signals growth)—increased 2.1% over October’s 54.4, which was down 2.3% compared to September, growing, at a faster rate, for the 30th consecutive month, with services growth intact for 152 of the last 154 months through November.  

The November Services PMI is 0.7% ahead of thew 12-month average of 57.2 with December 2021 marking the high mark for that period, at 62.3, and October’s 54.4 marking the low (and is also the lowest Services PMI practicing going back to May 2020’s 45.2.

ISM reported that 13 of the service sectors it tracks saw gains in October, including: Real Estate, Rental & Leasing; Mining; Agriculture, Forestry, Fishing & Hunting; Other Services; Construction; Health Care & Social Assistance; Public Administration; Retail Trade; Professional, Scientific & Technical Services; Accommodation & Food Services; Utilities; Transportation & Warehousing; and Educational Services. The three industries reporting decreases were: Management of Companies & Support Services; Wholesale Trade; and Information.

The report’s equally weighted subindexes that directly factor into the NMI were mixed, from October to November, including:

  • Business activity/production, at 64.7, rose 9.0%, growing, at a faster rate, for the 30th consecutive month with 13 sectors reporting growth;
  • New orders, at 56.0, fell 0.5%, growing, at a slower rate, for the 30th consecutive month, following two months of sequential contraction preceded by 128 months of expansion, with 12 sectors growing;
  • Employment, at 51.5, increased 2.4%, growing after contracting in October, which was preceded by two months of growth, with nine sectors reporting growth;
  • Backlog of orders, at 51.8, fell 0.4%, growing, at a slower rate, for the 23rd consecutive month, with eight sectors reporting an increase;
  • Supplier deliveries, at 53.8 (a practicing above 50 indicates slower deliveries), were down 2.4% compared to November, slowing, at a slower rate, for the 42nd consecutive month, with nine services sectors reporting slower deliveries; and
  • Prices, at 70.0, falling 0.7%, increasing, at a slower rate, for the 66th consecutive month, with 16 services sectors reporting growth

Comments from ISM member respondents included in the report highlighted various issues being seen in the services sector.

A retail trade respondent observed that business is stable, with employment low, and inflation lower month-to-month, adding that supply chain issues are stabilizing. And a construction respondent said that things were generally unchanged from month-to-month, adding that new business requests are solid, coupled with costs rising steadily for materials, meals, and lodging.

Tony Nieves, Chair of the ISM’s Services Business Survey Committee, said in an interview that the services economy remained in a good position in November, adding that any Services PMI practicing coming in at 50 or above is a good number.

“The composite beat expectations, driven by the 9% gain in business activity, which is most likely attributed to how holiday season demand has not waned—and is still up a little bit—and the new fiscal period for government and administration,” he said. “Employment also drove the number up; we came from contraction territory to being up 2.4%, to 51.5. It is a mixed bag.”

Further addressing employment, he said that, for the non-farm payroll, retail jobs were down, Nieves said that ISM’s data focuses on directional change, for month-over-month.

“We have to look at it in totality, and the fact is that retailers said they added jobs for the holiday season,” he said. “Looking across the board, it is a combination of how companies are not able to backfill [positions] as much as they would like. They may have shown a downward trend in the past; it was not because they were laying people off, it was more about they could not get the workers they wanted.”

And he pointed to cutbacks in the IT industry, as well as cutbacks in for online distribution, which has leveled off since the peak of the pandemic, as it is not needed as much as it previously was.

When asked how the slight waning in inflation and also easing in gasoline prices is benefitting the services sector, he explained those are positive, and he added that the Federal Reserve raising interest rates at a less aggressive pace as in the past can work to stave off inflation.

“We—and the Fed—felt that that it [inflation] was transitory, and then it was demand-pull, and now it is still all about a combination of demand exceeding supply, even though capacity is coming back online, for the most part, there are still shortages in certain areas,” he said. “It is driving prices, and there is some [movement] in people trying to go with what the market will bear versus the actual supply and demand component.”

Looking at 2022 services sector activity on a year-to-date basis through November, Nieves said that it is important to note that it came off a 2021, which had some very strong pent-up demand-driven numbers, with things starting to normalize.

“I think that these Services PMI numbers we are seeing now in the mid-50s may come back down next month, or may be the same, or increase a little bit,” he said. “I don’t expect huge spikes for the composite for December. 2022 should finish fairly strong, and I think we will go back into the historic pattern, where we see a slight pullback in January as we always do post-holiday. And we have the potential, if February does not look good, that in the following months we may see a recession come on, but even if we do get into some contraction territory, we won’t see a deep, long tranche if we get into some kind of contraction or recessionary period.”




Mon, 05 Dec 2022 03:59:00 -0600 text/html https://www.logisticsmgmt.com/article/services_economy_turns_in_strong_november_performance_reports_ism
Killexams : Woke-ism ‘Not a Factor’ in the Marine Corps, Commandant Says

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Thu, 08 Dec 2022 12:44:00 -0600 en text/html https://www.defenseone.com/policy/2022/12/woke-ism-not-factor-marine-corps-commandant-says/380635/
Killexams : U.S. manufacturing sector contracts in November - ISM

WASHINGTON, Dec 1 (Reuters) - U.S. manufacturing activity contracted for the first time in 2-1/2 years in November as higher borrowing costs weighed on demand for goods, but a measure of prices paid by factories for inputs fell for a second straight month, supporting views that inflation could continue trending lower.

The Institute for Supply Management (ISM) said on Thursday that its manufacturing PMI fell to 49.0 last month. That was the first contraction and also the weakest practicing since May 2020, when the economy was reeling from the initial wave of COVID-19 infections, and followed 50.2 in October.

A practicing below 50 indicates contraction in manufacturing, which accounts for 11.3% of the U.S. economy. Still, the index remains above the level that is typically associated with a recession in the broader U.S. economy. Economists polled by Reuters had forecast the index sliding to 49.8.

The Federal Reserve is in the midst of what has become the fastest rate-hiking cycle since the 1980s, as it battles inflation, raising the risks of a recession next year.

Fed Chair Jerome Powell said on Wednesday the U.S. central bank could scale back the pace of its rate increases "as soon as December." The Fed has raised its policy rate by 375 basis points this year from near zero to a 3.75%-4.00% range.

Manufacturing is also being pressured by the rotation of spending back to services from goods as the nation moves away from the pandemic.

The ISM survey's forward-looking new orders sub-index dropped to 47.2, remaining in contraction territory for a third straight month. Order backlogs also dwindled further also a function of improving supply chains.

The survey's measure of provider deliveries rose to 47.2 from 46.8 in September, which was the first decline below the 50 threshold since February 2016. A practicing below 50 indicates faster deliveries to factories.

With supply chain bottlenecks easing, the outlook for inflation is improving. A measure of prices paid by manufacturers fell to a 2-1/2 year low of 43.0 from 46.6 in October. The drop, which also reflected a moderation in commodity prices, offers hope that inflation has already peaked.

Annual consumer prices increased below 8% in October for the first time in eight months.

The ISM survey's measure of factory employment decreased to 48.4 from 50.0 in October. The decline is likely because of slowing demand for labor as manufacturers brace for economic turbulence.

The government reported on Wednesday that nondurable manufacturing job openings decreased by 95,000 at the end of October, contributing to a drop in overall vacancies in the economy. Still job openings remain considerably high and there were 1.7 openings for every unemployed person in October.

Reporting by Lucia Mutikani; Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.

Thu, 01 Dec 2022 01:26:00 -0600 Reuters en text/html https://www.reuters.com/markets/us/us-manufacturing-sector-contracts-november-ism-2022-12-01/
Killexams : Why you could have 'face-ism': An extreme tendency to judge people based on their facial features

You've finally got an interview for your dream job. Dozens of applications, dozens of rejection letters—but now you've got a shot at the job you really wanted. In you go. Maybe you shake hands with the person who will decide your future, pour a glass of water to steady your nerves.

But what you don't know is that none of this matters. The second your interviewer set eyes on you, they decided you looked so incompetent and untrustworthy that you would never get this job. Because unfortunately, they are one of a subset of people who new research shows have a disposition to judge extreme personality traits from just a quick view of a person's face.

Look at the two faces below. Would you hire these people? Who looks more intelligent? Would you trust either person to watch your laptop in a cafe while you pop out to take a call?

These images were created by psychologist Lisa DeBruine and colleagues. In fact they are composite images, with each one having been created by combining four different faces.

Even though these faces aren't real, you may still have made a snap verdict about each composite person's competence based on their facial expression and structure. We do this all the time. Even though the people in the images don't exist, we still have projected traits onto them. Making quick judgments about how much we should trust someone, how dominant they are likely to be, or how intelligent they are can be useful estimates of personality.

But this can also, unfortunately, lead to stereotyping—for example, thinking that people with a particular physical characteristic must all be untrustworthy.

Harsh judgments

Recent work from researchers in Japan suggests something more worrying; that some of us have a disposition to draw drastic conclusions about the traits and personalities of others based solely on facial appearance.

In a series of online studies with more than 300 participants, Atsunobu Suzuki and colleagues found what they call "face-based trait inferences" (FBTIs). Basically, subjects made a series of personality judgments having taken a brief look at someone's face. While everyone makes FBTIs to some degree, they found that some people only make extreme judgments (both positive and negative). This held even when the age, sex and ethnicity of participants were controlled for.

Imagine seeing a certain type of face, perhaps with hard eyes and masculine features, and immediately getting the impression the person is extremely untrustworthy. Or that someone with more feminine features and larger eyes is incompetent. As Suzuki and colleagues say, this is problematic indeed.

Face up to the problem

We already know unconscious bias is rife in about new hires. A 2018 study sent separate versions of almost identical CVs to apply for 50 different jobs. The only difference was the name on the CV: Adam Smith on one and Ravindra Thalwal on the other. Ravindra received about half of the responses compared with his more traditionally British sounding doppelgänger.

One of the leading figures in first impression research, Alexander Todorov, tells us these snap judgments are predictable but usually inaccurate. And we also know that first impressions are usually hard to shake. So this could mean the wrong people are frequently being hired for jobs.

The thing with unconscious bias is you don't realize you're doing it most of the time. It's one of the reasons some companies insist on unconscious bias training (although some people still refuse to do it). Unconscious bias training is not some fix-all remedy for discrimination, but even short interventions have been shown to change people's attitudes.

You can design unconscious training for prejudices against other physical characteristics such as race, gender and weight. But face-ism seems to be a stereotype that crosses ethnicities, the sexes and physical appearance.

One solution could be to make people aware that they exhibit extreme FBTIs by taking a test similar to the Suzuki experiment. Research has shown that being made aware of your biases can lead to a change of mindset in the short term, but people need extra interventions periodically to make any real behavior change last.

Maybe just making someone aware that they make extreme personality judgments based on facial appearance will be enough to pull the into the conscious. We're certainly going to have to try; otherwise you might yourself be a victim of face-ism in the future.

This article is republished from The Conversation under a Creative Commons license. Read the original article.The Conversation

Citation: Why you could have 'face-ism': An extreme tendency to judge people based on their facial features (2022, December 5) retrieved 14 December 2022 from https://medicalxpress.com/news/2022-12-face-ism-extreme-tendency-people-based.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Mon, 05 Dec 2022 01:52:00 -0600 en text/html https://medicalxpress.com/news/2022-12-face-ism-extreme-tendency-people-based.html
Killexams : Manufacturing PMI® at 49%; November 2022 Manufacturing ISM® Report On Business®

New Orders Contracting; Production Growing; Backlogs Contracting; provider Deliveries Faster; Raw Materials Inventories Growing; Customers' Inventories Too Low; Prices Decreasing; Exports and Imports Contracting

TEMPE, Ariz., Dec. 1, 2022 /PRNewswire/ -- Economic activity in the manufacturing sector contracted in November for the first time since May 2020 after 29 consecutive months of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee:

"The November Manufacturing PMI® registered 49 percent, 1.2 percentage points lower than the 50.2 percent recorded in October. Regarding the overall economy, this figure indicates expansion for the 30th month in a row after contraction in April and May 2020. The Manufacturing PMI® figure is the lowest since May 2020, when it registered 43.5 percent. The New Orders Index remained in contraction territory at 47.2 percent, 2 percentage points lower than the 49.2 percent recorded in October. The Production Index practicing of 51.5 percent is a 0.8-percentage point decrease compared to October's figure of 52.3 percent. The Prices Index registered 43 percent, down 3.6 percentage points compared to the October figure of 46.6 percent; this is the index's lowest practicing since May 2020 (40.8 percent). The Backlog of Orders Index registered 40 percent, 5.3 percentage points lower than the October practicing of 45.3 percent. The Employment Index returned to contraction territory (48.4 percent, down 1.6 percentage points) after being unchanged in October at 50 percent. The provider Deliveries Index practicing of 47.2 percent is 0.4 percentage point higher than the October figure of 46.8 percent. Except for last month, the provider Deliveries Index hasn't been at this level since February 2012 (47 percent). The Inventories Index registered 50.9 percent, 1.6 percentage points lower than the October practicing of 52.5 percent. The New Export Orders Index practicing of 48.4 percent is up 1.9 percentage points compared to October's figure of 46.5 percent. The Imports Index dropped into contraction territory at 46.6 percent, 4.2 percentage points below the October practicing of 50.8 percent."

Fiore continues, "The U.S. manufacturing sector dipped into contraction, with the Manufacturing PMI® at its lowest level since the coronavirus pandemic recovery began. With Business Survey Committee panelists reporting softening new order rates over the previous six months, the November composite index practicing reflects companies' preparing for future lower output. Demand eased, with the (1) New Orders Index remaining in contraction territory, (2) New Export Orders Index below 50 percent for a fourth consecutive month, (3) Customers' Inventories Index effectively in 'just right' territory, climbing 7.1 percentage points, and (4) Backlog of Orders Index moving deeper into contraction. Output/Consumption (measured by the Production and Employment indexes) declined month over month, with a combined negative 2.4-percentage point impact on the Manufacturing PMI® calculation. The Employment Index moved back into contraction, and the Production Index decreased but still remained in modest growth territory. Panelists' companies confirm that they are continuing to manage head counts through a combination of hiring freezes, employee attrition, and now layoffs. Inputs — defined as provider deliveries, inventories, prices and imports — mostly accommodated future demand growth. The provider Deliveries Index indicated faster deliveries, and the Inventories Index expanded at a slower rate as panelists' companies continued to manage the total supply chain inventory. The Prices Index decreased for the ninth consecutive month, falling deeper into contraction territory.

"Of the six biggest manufacturing industries, two — Petroleum & Coal Products; and Transportation Equipment — registered weak-to-moderate growth in November.

"Manufacturing contracted in November after expanding for 29 straight months. Panelists' companies continue to judiciously manage hiring, other than October 2022, the month-over-month provider delivery performance was the best since February 2012 when it registered 47 percent, and material lead times declined approximately 9 percent from the prior month, approximately 18 percent over the last four months. Managing head counts and total supply chain inventories remain primary goals. Order backlogs, prices and now lead times are declining rapidly, which should bring buyers and sellers back to the table to refill order books based on 2023 business plans."

Six manufacturing industries reported growth in November, in the following order: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Miscellaneous Manufacturing; Petroleum & Coal Products; and Transportation Equipment. The 12 industries reporting contraction in November, in the following order, are: Printing & Related Support Activities; Wood Products; Paper Products; Textile Mills; Fabricated Metal Products; Furniture & Related Products; Chemical Products; Plastics & Rubber Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; and Electrical Equipment, Appliances & Components.

WHAT RESPONDENTS ARE SAYING

  • "Customer demand is softening, yet suppliers are maintaining high prices and record profits. Pushing for cost reductions based on market evidence has been surprisingly successful." [Computer & Electronic Products]

  • "Future volumes are on a downward trend for the next 60 days." [Chemical Products]

  • "Orders for transportation equipment remain strong. Supply chain issues persist, with minimal direct effect on output." [Transportation Equipment]

  • "Consumer goods are slowing down in several of our markets, although the U.S. economy seems decent. Cannot say the same for the European economy." [Food, Beverage & Tobacco Products]

  • "General economic uncertainty has created a slowdown in orders as we approach the end of the year, and many of our key customers are reducing their capital expenditures spend." [Machinery]

  • "Overall, things are worsening. Housing starts are down. We're doing well against our competitors, but the industry overall is down. We're sitting on cash (that is) tied up in inventory." [Electrical Equipment, Appliances & Components]

  • "The market remains consistent: sales match expectations; there are concerns about the impact of rising interest rates on customers; most suppliers have recovered on labor, but some are still struggling; and inflation seems to have peaked, but commodity price decreases have not been passed through to us. Lots of unknowns regarding impact to the European Union from the Russia-Ukraine war and questions about customer behavior in 2023." [Miscellaneous Manufacturing]

  • "There is caution going into 2023, but the commercial section of construction seems to still be going strong." [Nonmetallic Mineral Products]

  • "Looking into December and the first quarter of 2023, business is softening as uncertain economic conditions lie ahead." [Plastics & Rubber Products]

  • "Slight improvement on overall business conditions from the previous month." [Primary Metals]

MANUFACTURING AT A GLANCE
November 2022

Index

Series
Index

Nov

Series
Index

Oct

Percentage

Point

Change

Direction

Rate of
Change

Trend*
(Months)

Manufacturing PMI®

49.0

50.2

-1.2

Contracting

From Growing

1

New Orders

47.2

49.2

-2.0

Contracting

Faster

3

Production

51.5

52.3

-0.8

Growing

Slower

30

Employment

48.4

50.0

-1.6

Contracting

From Unchanged

1

Supplier Deliveries

47.2

46.8

+0.4

Faster

Slower

2

Inventories

50.9

52.5

-1.6

Growing

Slower

16

Customers' Inventories

48.7

41.6

+7.1

Too Low

Slower

74

Prices

43.0

46.6

-3.6

Decreasing

Faster

2

Backlog of Orders

40.0

45.3

-5.3

Contracting

Faster

2

New Export Orders

48.4

46.5

+1.9

Contracting

Slower

4

Imports

46.6

50.8

-4.2

Contracting

From Growing

1

OVERALL ECONOMY

Growing

Slower

30

Manufacturing Sector

Contracting

From Growing

1

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Inventories indexes.
*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY

Commodities Up in Price
Electrical Components; Electricity; Electronic Components (24); and Labor — Temporary (3).

Commodities Down in Price
Aluminum (7); Copper (2); Freight; Lumber (3); Ocean Freight (3); Plastic Resins (6); Polypropylene (4); Steel (7); Steel — Carbon (5); Steel — Hot Rolled (7); and Steel Products (5).

Commodities in Short Supply
Electrical Components (26); Electronic Components (24); Hydraulic Components (7); Rubber Based Products; Semiconductors (24); and Steel Products.

Note: The number of consecutive months the commodity is listed is indicated after each item.

NOVEMBER 2022 MANUFACTURING INDEX SUMMARIES

Manufacturing PMI®
The U.S. manufacturing sector contracted in November, as the Manufacturing PMI® registered 49 percent, 1.2 percentage points below the practicing of 50.2 percent recorded in October. "After five months of flat or marginally positive change, the decrease last month took the Manufacturing PMI® into contraction. Of the five subindexes that directly factor into the Manufacturing PMI®, two (Production and Inventories) were in growth territory, though both eased. The PMI® registered its lowest level since May 2020, when the index was 43.5 percent. Of the six biggest manufacturing industries, two — Petroleum & Coal Products; and Transportation Equipment — registered weak-to-moderate growth in November. The Production Index decreased 0.8 percentage point, inching closer to contraction territory. Supply chain congestion continued to ease, indicated by the provider Deliveries Index showing faster deliveries. Only two of the 10 subindexes were positive for the period," says Fiore. A practicing above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting.

A Manufacturing PMI® above 48.7 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the November Manufacturing PMI® indicates the overall economy grew in November for the 30th consecutive month following contraction in April and May 2020. "The past relationship between the Manufacturing PMI® and the overall economy indicates that the Manufacturing PMI® for November (49 percent) corresponds to a 0.1-percent increase in real gross domestic product (GDP) on an annualized basis," says Fiore.

THE LAST 12 MONTHS

Month

Manufacturing
PMI®

Month

Manufacturing
PMI®

Nov 2022

49.0

May 2022

56.1

Oct 2022

50.2

Apr 2022

55.4

Sep 2022

50.9

Mar 2022

57.1

Aug 2022

52.8

Feb 2022

58.6

Jul 2022

52.8

Jan 2022

57.6

Jun 2022

53.0

Dec 2021

58.8

Average for 12 months – 54.4

High – 58.8

Low – 49.0

New Orders
ISM®'s New Orders Index contracted for the third consecutive month in November, registering 47.2 percent, a decrease of 2 percentage points compared to the 49.2 percent reported in October. "None of the six largest manufacturing sectors reported increased new orders. Price and lead time declines as well as backlog contraction should encourage buyers to reenter the market and sales agents to be more aggressive in seeking new business," says Fiore. (For more on lead times, see the Buying Policy section of this report.) A New Orders Index above 52.9 percent, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).

Of the 18 manufacturing industries, only one reported growth in new orders in November: Apparel, Leather & Allied Products. Fourteen industries reported a decline in new orders in November, in the following order: Wood Products; Printing & Related Support Activities; Paper Products; Primary Metals; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Machinery; Plastics & Rubber Products; Chemical Products; Transportation Equipment; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Computer & Electronic Products.

New Orders

%Higher

%Same

%Lower

Net

Index

Nov 2022

12.7

62.3

25.0

-12.3

47.2

Oct 2022

18.3

56.4

25.3

-7.0

49.2

Sep 2022

16.0

62.8

21.2

-5.2

47.1

Aug 2022

17.5

63.1

19.4

-1.9

51.3

Production
The Production Index registered 51.5 percent in November, 0.8 percentage point lower than the October practicing of 52.3 percent, indicating growth for the 30th consecutive month. "Of the top six industries, only two — Computer & Electronic Products; and Transportation Equipment — expanded in November. Materials and labor availability continue to improve, as panelists' companies begin to significantly reduce their backlogs of overdue orders," says Fiore. An index above 52.4 percent, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.

The seven industries reporting growth in production during the month of November — listed in order — are: Apparel, Leather & Allied Products; Primary Metals; Nonmetallic Mineral Products; Computer & Electronic Products; Plastics & Rubber Products; Transportation Equipment; and Electrical Equipment, Appliances & Components. The seven industries reporting a decrease in production in November — in the following order — are: Printing & Related Support Activities; Textile Mills; Furniture & Related Products; Machinery; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; and Fabricated Metal Products.

Production

%Higher

%Same

%Lower

Net

Index

Nov 2022

20.2

61.7

18.1

+2.1

51.5

Oct 2022

20.2

62.3

17.5

+2.7

52.3

Sep 2022

17.5

64.3

18.2

-0.7

50.6

Aug 2022

17.6

65.4

17.0

+0.6

50.4

Employment
ISM®'s Employment Index registered 48.4 percent in November, 1.6 percentage points lower than the October practicing of 50 percent. "The index indicated employment contracted after being unchanged for one month. Of the six big manufacturing sectors, only two (Food, Beverage & Tobacco Products; and Machinery) expanded. Labor management sentiment continued to shift, with a number of panelists' companies reducing employment levels through hiring freezes, attrition, and now layoffs. In November, layoffs were mentioned in 14 percent of employment comments, up from 6 percent in October. Turnover rates remained consistent, with 30 percent of comments citing backfill and retirement issues, generally the same rate since September. For those companies expanding their workforces, comments continue to support an improving hiring environment," says Fiore. An Employment Index above 50.5 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of 18 manufacturing industries, seven reported employment growth in November, in the following order: Apparel, Leather & Allied Products; Primary Metals; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Food, Beverage & Tobacco Products; and Machinery. The five industries reporting a decrease in employment in November are: Textile Mills; Paper Products; Computer & Electronic Products; Chemical Products; and Fabricated Metal Products. Six industries reported no change in employment in November compared to October.

Employment

%Higher

%Same

%Lower

Net

Index

Nov 2022

12.8

70.6

16.6

-3.8

48.4

Oct 2022

16.0

68.9

15.1

+0.9

50.0

Sep 2022

17.5

60.3

22.2

-4.7

48.7

Aug 2022

19.3

68.3

12.4

+6.9

54.2

Supplier Deliveries
The delivery performance of suppliers to manufacturing organizations was faster for a second straight month in November, as the provider Deliveries Index registered 47.2 percent, 0.4 percentage point higher than the 46.8 percent reported in October. Prior to October, the last practicing under 50 percent was in February 2016 (49.6 percent); this is the first time the index has spent consecutive months in "faster" territory since October-December 2015. Of the top six manufacturing industries, one (Petroleum & Coal Products) reported slower deliveries. "Although a touch slower than the previous month, the November practicing indicates the best month-over-month provider deliveries performance in more than a decade (since February 2012, when the index registered 47 percent). In November, 86.1 percent of panelists reported 'same' or 'faster' delivery times. Panelists' comments overwhelmingly confirmed that suppliers performed better in November compared to previous months," says Fiore. A practicing below 50 percent indicates faster deliveries, while a practicing above 50 percent indicates slower deliveries.

Six of 18 manufacturing industries reported slower provider deliveries in November, in the following order: Apparel, Leather & Allied Products; Textile Mills; Petroleum & Coal Products; Nonmetallic Mineral Products; Primary Metals; and Miscellaneous Manufacturing. The 11 industries reporting faster provider deliveries in November as compared to October — in the following order — are: Wood Products; Electrical Equipment, Appliances & Components; Paper Products; Plastics & Rubber Products; Furniture & Related Products; Fabricated Metal Products; Chemical Products; Computer & Electronic Products; Machinery; Food, Beverage & Tobacco Products; and Transportation Equipment.

Supplier Deliveries

%Slower

%Same

%Faster

  Net

Index

Nov 2022

13.9

66.5

19.6

-5.7

47.2

Oct 2022

11.7

70.2

18.1

-6.4

46.8

Sep 2022

16.8

71.2

12.0

+4.8

52.4

Aug 2022

19.6

71.0

9.4

+10.2

55.1

Inventories
The Inventories Index registered 50.9 percent in November, 1.6 percentage points lower than the 52.5 percent reported for October. "Manufacturing inventories expanded at a slower rate compared to October. The index recorded its lowest level since July 2021, when it registered 49.1 percent. Of the six big manufacturing industries, four (Machinery; Computer & Electronic Products; Transportation Equipment; and Chemical Products) increased manufacturing raw material inventories in November. Panelists' companies continue their efforts to reduce their total supply chain inventories, indicated by the contraction in new orders, slow expansion in manufacturing inventories and the 'just right' level of customers' inventories," says Fiore. An Inventories Index greater than 44.4 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

Of 18 manufacturing industries, the eight reporting higher inventories in November — in the following order — are: Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Primary Metals; Machinery; Computer & Electronic Products; Transportation Equipment; and Chemical Products. The eight industries reporting contracting inventories in November — in the following order — are: Printing & Related Support Activities; Wood Products; Textile Mills; Apparel, Leather & Allied Products; Paper Products; Fabricated Metal Products; Petroleum & Coal Products; and Plastics & Rubber Products.

Inventories

%Higher

%Same

%Lower

Net

Index

Nov 2022

20.9

58.3

20.8

+0.1

50.9

Oct 2022

21.6

63.3

15.1

+6.5

52.5

Sep 2022

23.0

64.9

12.1

+10.9

55.5

Aug 2022

23.2

62.9

13.9

+9.3

53.1

Customers' Inventories
ISM®'s Customers' Inventories Index registered 48.7 percent in November, 7.1 percentage points higher than the 41.6 percent reported for October. "Customers' inventory levels are considered essentially 'just right.' The index recorded its highest level since April 2020 (48.8 percent). The current index level is no longer providing positive support to future manufacturing expansion," says Fiore.

Six industries reported customers' inventories as too high in November, in the following order: Textile Mills; Paper Products; Wood Products; Primary Metals; Chemical Products; and Electrical Equipment, Appliances & Components. The eight industries reporting customers' inventories as too low in November — listed in order — are: Nonmetallic Mineral Products; Machinery; Petroleum & Coal Products; Miscellaneous Manufacturing; Transportation Equipment; Food, Beverage & Tobacco Products; Computer & Electronic Products; and Fabricated Metal Products.

Customers'
Inventories

%
Reporting

%Too
High

%About
Right

%Too
Low

Net

Index

Nov 2022

77

20.6

56.2

23.2

-2.6

48.7

Oct 2022

74

13.4

56.3

30.3

-16.9

41.6

Sep 2022

73

13.5

56.1

30.4

-16.9

41.6

Aug 2022

75

12.2

53.4

34.4

-22.2

38.9

Prices
The ISM® Prices Index registered 43 percent in November, 3.6 percentage points lower compared to the October practicing of 46.6 percent, indicating raw materials prices decreased for the second time in 29 months. This is the index's lowest level since a practicing of 40.8 percent in May 2020. Over the past eight months, the index has decreased 44.1 percentage points, including a combined 26-percentage point plunge in July and August. None of the top six manufacturing industries reported increases in prices in November. "Price declines continue to be driven by relaxation in energy markets, copper, steel, aluminum, plastics, corrugate and as well as volatility in freight costs. Notably, 87 percent of respondents reported paying the same or lower prices in November, compared to 80 percent in October," says Fiore. A Prices Index above 52.6 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

In November, only one industry reported paying increased prices for raw materials: Miscellaneous Manufacturing. The 10 industries reporting paying decreased prices for raw materials in November — in the following order — are: Textile Mills; Wood Products; Furniture & Related Products; Fabricated Metal Products; Plastics & Rubber Products; Transportation Equipment; Chemical Products; Electrical Equipment, Appliances & Components; Machinery; and Computer & Electronic Products. Seven industries reported no change in prices in November compared to October.

Prices

%Higher

%Same

%Lower

Net

Index

Nov 2022

13.1

59.8

27.1

-14.0

43.0

Oct 2022

19.7

53.8

26.5

-6.8

46.6

Sep 2022

31.4

40.5

28.1

+3.3

51.7

Aug 2022

31.7

41.6

26.7

+5.0

52.5

Backlog of Orders
ISM®'s Backlog of Orders Index registered 40 percent in November, a 5.3-percentage point decrease compared to October's practicing of 45.3 percent, indicating order backlogs contracted for the second consecutive month after a 27-month period of expansion. Of the six largest manufacturing sectors, only one — Machinery — expanded order backlogs in November. "Backlogs contracted again in November at a notable rate, as weak new order levels combined with production expansion negatively impacted manufacturing books of business," says Fiore. "The index recorded its lowest level since May 2020, when it registered 38.2 percent."

Two industries reported growth in order backlogs in November: Apparel, Leather & Allied Products; and Machinery. Twelve industries reported lower backlogs in November, in the following order: Wood Products; Textile Mills; Printing & Related Support Activities; Paper Products; Primary Metals; Furniture & Related Products; Chemical Products; Plastics & Rubber Products; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Fabricated Metal Products.

Backlog of
Orders

%
Reporting

%Higher

%Same

%Lower

Net

Index

Nov 2022

91

13.7

52.6

33.7

-20.0

40.0

Oct 2022

93

17.4

55.8

26.8

-9.4

45.3

Sep 2022

90

25.5

50.8

23.7

+1.8

50.9

Aug 2022

93

24.6

56.7

18.7

+5.9

53.0

New Export Orders ISM®'s New Export Orders Index registered 48.4 percent in November, 1.9 percentage points higher than the October practicing of 46.5 percent. "The New Export Orders Index contracted in November for the fourth consecutive month after 25 straight months in expansion territory. Weakness in European economies and China's economic sluggishness, as well as the strong dollar, continued to constrain new export order activity and negatively impact new order rates," says Fiore.

Three industries reported growth in new export orders in November: Nonmetallic Mineral Products; Plastics & Rubber Products; and Food, Beverage & Tobacco Products. The four industries reporting a decrease in new export orders in November are: Fabricated Metal Products; Chemical Products; Machinery; and Computer & Electronic Products. Ten industries reported no change in new export orders in November compared to October.

New Export
Orders

%
Reporting

%Higher

%Same

%Lower

Net

Index

Nov 2022

72

11.2

74.4

14.4

-3.2

48.4

Oct 2022

73

6.7

79.5

13.8

-7.1

46.5

Sep 2022

72

9.4

76.7

13.9

-4.5

47.8

Aug 2022

75

9.9

79.0

11.1

-1.2

49.4

Imports
ISM®'s Imports Index registered 46.6 percent in November, a decrease of 4.2 percentage points compared to October's figure of 50.8 percent. "The index moved into contraction in November after five months of expansion, dropping to its lowest level since May 2020 (41.3 percent)," says Fiore.

The four industries reporting growth in imports in November are: Apparel, Leather & Allied Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Transportation Equipment. Nine industries reported lower volumes of imports in November, in the following order: Wood Products; Paper Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Chemical Products; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Machinery; and Food, Beverage & Tobacco Products.

Imports

% Reporting

%Higher

%Same

%Lower

Net

Index

Nov 2022

84

10.2

72.8

17.0

-6.8

46.6

Oct 2022

84

9.3

82.9

7.8

+1.5

50.8

Sep 2022

83

15.2

74.8

10.0

+5.2

52.6

Aug 2022

83

15.6

73.8

10.6

+5.0

52.5

The provider Deliveries, Customers' Inventories, Prices, Backlog of Orders, New Export Orders, and Imports indexes do not meet the accepted criteria for seasonal adjustments.

Buying Policy
The average commitment lead time for Capital Expenditures in November was 177 days, a decrease of two days compared to October. Average lead time in November for Production Materials was 84 days, a decrease of nine days. Average lead time for Maintenance, Repair and Operating (MRO) Supplies was 44 days, a decrease of four days.

Percent Reporting

Capital
Expenditures

Hand-to-
Mouth

30 Days

60 Days

90 Days

6 Months

1 Year+

Average
Days

Nov 2022

16

4

8

11

33

28

177

Oct 2022

16

6

6

12

30

30

179

Sep 2022

16

5

7

11

32

29

178

Aug 2022

18

5

6

11

29

31

180

Percent Reporting

Production Materials

Hand-to-
Mouth

30 Days

60 Days

90 Days

6 Months

1 Year+

Average
Days

Nov 2022

8

23

25

27

13

4

84

Oct 2022

8

21

26

25

13

7

93

Sep 2022

9

24

24

22

13

8

94

Aug 2022

7

22

24

25

15

7

96

Percent Reporting

MRO Supplies

Hand-to-
Mouth

30 Days

60 Days

90 Days

6 Months

1 Year+

Average
Days

Nov 2022

30

34

17

15

3

1

44

Oct 2022

27

36

16

15

5

1

48

Sep 2022

26

35

19

15

4

1

48

Aug 2022

26

34

21

14

5

0

46

About This Report
DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of November 2022.

The data presented herein is obtained from a survey of manufacturing supply executives based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation
The Manufacturing ISM® Report On Business® is based on data compiled from purchasing and supply executives nationwide. The composition of the Manufacturing Business Survey Committee is stratified according to the North American Industry Classification System (NAICS) and each of the following NAICS-based industry's contribution to gross domestic product (GDP): Food, Beverage & Tobacco Products; Textile Mills; Apparel, Leather & Allied Products; Wood Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Chemical Products; Plastics & Rubber Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Electrical Equipment, Appliances & Components; Transportation Equipment; Furniture & Related Products; and Miscellaneous Manufacturing (products such as medical equipment and supplies, jewelry, sporting goods, toys and office supplies). The data are weighted based on each industry's contribution to GDP. According to the BEA estimates for 2020 GDP (released December 22, 2021), the six largest manufacturing subsectors are: Computer & Electronic Products; Chemical Products; Transportation Equipment; Petroleum & Coal Products; Food, Beverage & Tobacco Products; and Machinery. Beginning in February 2018 with January 2018 data, computation of the indexes is accomplished utilizing unrounded numbers.

Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (New Orders, Backlog of Orders, New Export Orders, Imports, Production, provider Deliveries, Inventories, Customers' Inventories, Employment and Prices), this report shows the percentage reporting each response, the net difference between the number of responses in the positive economic direction (higher, better and slower for provider Deliveries) and the negative economic direction (lower, worse and faster for provider Deliveries), and the diffusion index. Responses are raw data and are never changed. The diffusion index includes the percent of positive responses plus one-half of those responding the same (considered positive).

The resulting single index number for those meeting the criteria for seasonal adjustments (Manufacturing PMI®, New Orders, Production, Employment and Inventories) is then seasonally adjusted to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-moveable holidays. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The Manufacturing PMI® is a composite index based on the diffusion indexes of five of the indexes with equal weights: New Orders (seasonally adjusted), Production (seasonally adjusted), Employment (seasonally adjusted), provider Deliveries, and Inventories (seasonally adjusted).

Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. A Manufacturing PMI® reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. A Manufacturing PMI® above 48.7 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.7 percent, it is generally declining. The distance from 50 percent or 48.7 percent is indicative of the extent of the expansion or decline. With some of the indicators within this report, ISM® has indicated the departure point between expansion and decline of comparable government series, as determined by regression analysis. The Manufacturing ISM® Report On Business® survey is sent out to Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to report on information for the current month for U.S. operations only. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to provide the most accurate picture of current business activity. ISM® then compiles the report for release on the first business day of the following month.

The industries reporting growth, as indicated in the Manufacturing ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.

Responses to Buying Policy reflect the percent reporting the current month's lead time, the approximate weighted number of days ahead for which commitments are made for Capital Expenditures; Production Materials; and Maintenance, Repair and Operating (MRO) Supplies, expressed as hand-to-mouth (five days), 30 days, 60 days, 90 days, six months (180 days), a year or more (360 days), and the weighted average number of days. These responses are raw data, never revised, and not seasonally adjusted.

ISM ROB Content
The Institute for Supply Management® ("ISM") Report On Business® (both Manufacturing and Non-Manufacturing) ("ISM ROB") contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, "Content") of ISM ("ISM ROB Content"). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM ROB Content (excluding any software code) solely for your personal, non-commercial use. The ISM ROB Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM ROB Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including but not limited to tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 309 West Elliot Road, Suite 113, Tempe, Arizona 85284-1556, or by emailing kcahill@ismworld.org. Subject: Content Request.

ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages, arising out of the use of the ISM ROB. Report On Business®, PMI®, and NMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management®
Institute for Supply Management® (ISM®) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM® Report On Business®, its highly regarded certification programs and the ISM® Advance Digital Platform. This report has been issued by the association since 1931, except for a four-year interruption during World War II.

The full text version of the Manufacturing ISM® Report On Business® is posted on ISM®'s website at www.ismrob.org on the first business day* of every month after 10:00 a.m. ET.

The next Manufacturing ISM® Report On Business® featuring December 2022 data will be released at 10:00 a.m. ET on Wednesday, January 4, 2023.

*Unless the New York Stock Exchange is closed.

Contact:

Kristina Cahill

Report On Business® Analyst

ISM®, ROB/Research Manager

Tempe, Arizona

+1 480.455.5910

Email: kcahill@ismworld.org

Institute for Supply Management logo. (PRNewsFoto/Institute for Supply Management) (PRNewsfoto/Institute for Supply Management)

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View original content to obtain multimedia:https://www.prnewswire.com/news-releases/manufacturing-pmi-at-49-november-2022-manufacturing-ism-report-on-business-301690752.html

SOURCE Institute for Supply Management

Thu, 01 Dec 2022 01:03:00 -0600 en-US text/html https://finance.yahoo.com/news/manufacturing-pmi-49-november-2022-150000642.html
Killexams : ISM Non-Manufacturing PMI Exceeded Expectations, Pushing Treasury Yields Up

Services PMI Data Shows Surprising Strength

U.S. has just released ISM Non-Manufacturing PMI report for November. The report indicated that ISM Non-Manufacturing PMI increased from 54.4 to 56.5, compared to analyst consensus of 53.3.

This surprising report has already had a material impact on global market dynamics. The higher-than-expected report boosts chances for a more hawkish Fed at the next meeting on December 14.

Traders also had a chance to take a look at the Factory Orders report for October. The report showed that Factory Orders increased by 1% month-over-month, while analysts expected that they would grow by 0.7%.

Earlier, traders evaluated the final readings of the S&P 500 Global Services PMI report, which indicated that Services PMI declined from 47.8 in October to 46.2 in November. Numbers below 50 show contraction.

U.S. Dollar Rallied After ISM Report

The U.S. Dollar Index made an attempt to settle above the 105 level after the release of the higher-than-expected ISM Non-Manufacturing PMI report.

Treasury yields moved higher, and the yield of 10-year Treasuries moved closer to the 3.60% level. A move above this level may provide additional support to the American currency.

Gold declined towards the $1775 level as hawkish Fed is bearish for gold and other precious metals. Silver, platinum, and palladium have also found themselves under pressure.

S&P 500, which has been moving lower ahead of the ISM report, gained additional downside momentum and tried to get below the 4020 level. NASDAQ Composite moved below the 11,350 level.

For a look at all of today’s economic events, check out our economic calendar.

Mon, 05 Dec 2022 02:05:00 -0600 en text/html https://www.fxempire.com/news/article/ism-non-manufacturing-pmi-exceeded-expectations-1220130
Killexams : Dow ends nearly 200 points lower as investors weigh ISM manufacturing and inflation data, await jobs report

U.S. stocks finished a choppy session mostly lower on Thursday after the ISM manufacturing index showed American factory activities contracted to a 30-month low in November.

Stocks had opened mostly higher Thursday after the Federal Reserve’s preferred inflation measure showed price pressures cooling in October, while reports suggested China is taking steps to relax its COVID restrictions to allow its economy to recover.

Investors now await November jobs data on Friday that could determine the pace of the central bank’s interest-rate hikes.

How stock indexes traded
  • The Dow Jones Industrial Average DJIA, +0.74% fell 194.76 points, or 0.6%, to finish at 34,395.01.
  • The S&P 500 SPX, +0.73% shed 3.54 points, or less than 0.1%, ending at 4,076.57.
  • The Nasdaq Composite COMP, +0.38% gained 14.45 points, or 0.1%, to end at 11,482.45.

On Wednesday, the Dow rose 737 points, or 2.2%, to officially exit a bear market, while the S&P 500 jumped 3.1%, and the Nasdaq Composite advanced 4.4%. The Dow rose 20.4% during October and November, the biggest two-month percentage gain since July 1938, according to Dow Jones Market Data.

What drove markets

The Institute for Supply Management’s manufacturing index, a key barometer of activity at American factories, fell to 49% in November, down from 50.2% in October. The ISM report is viewed as a window into the health of the economy, and numbers below 50% signal the economy is contracting.

Stocks turned down on profit-taking after Wednesday’s big jump, said Michael Hewson, chief market analyst at CMC Markets, in a note, while the ISM data underlined expectations the Fed has room to slow down the pace of rate increases.

“This peak inflation, softer growth narrative was reinforced by the ISM manufacturing survey which fell into contraction territory for the first time since May 2020, while prices paid fell to 43, and employment also contracted at 48.4,” he wrote.

Earlier, a gauge of U.S. inflation, the personal-consumption expenditures index, rose a modest 0.3% in October, adding another piece of evidence that points to slowly easing price pressures. The yearly rate of inflation slowed to 6% in October from 6.2% in the prior month and a 40-year high of 7% last summer. The core gauge that strips out volatile food and energy costs, rose 0.2% last month, below the consensus estimate of 0.3% collected from economists by Dow Jones. 

“We’re watching the inflation data closely and the most important inflation report of the year is going to be the CPI report on December 12, which could confirm the downtrend in inflation, which was first observed on November 10 (and which ignited a 5.5% single-day gain in the S&P 500),” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

“On the other hand, if inflation surprises to the upside on December 12, then all bets are off and we could see a sell-off into year-end – especially if the Fed decides to raise by 75 bps the next day, instead of the 50 bps which everyone is counting on,” he added.

Federal Reserve’s Federal Open Market Committee (FOMC) is meeting on December 13-14 to decide on the magnitude of the next rate hike.

See: Global financial markets having ‘awful year’ despite ‘great’ November for most assets, says Deutsche Bank

Stocks jumped Wednesday with the S&P 500 surging 3.1% following the Powell’s confirmation that a lower pace of interest rate hikes to combat inflation was more likely in coming months. It took the U.S. stock benchmark’s gains since its 2022 low in mid-October to 14.1%, after recent signs of easing price pressures had encouraged risk appetite once more.

“The general upbeat feeling since last month’s soft CPI print has carried into December after stocks surged thanks to a speech from Fed Chair Powell,” said Stephen Innes, managing partner at SPI Asset Management. “With markets increasingly predisposed to a terminal rate below 5% and inflation getting back close to target in 2024, the stock market’s rally could extend as pivot hopes should increase with interest rate risk now disproportionately skewed to the downside.”

“With so much money on the sidelines, fund managers may need to move into catch-up mode, so I suspect the market makers will position to get ahead of this flow in the new year so that the stock market dips will be shallow,” Innes added.

New York Federal Reserve President John Williams said on Thursday that the central bank is seeing some “forward looking indicators that inflation is turning,” but it will take years to get inflation all the back down to 2%. The personal consumption expenditure price index was running at a 6% annual pace in November.

Read: Dollar set to finish below key level for first time since June 2021, signaling its rally could be over

Two-year treasury yields TMUBMUSD02Y, 4.184%, which are particularly sensitive to monetary policy trends, continued to edge lower after the inflation data. The dip in yields has taken the shine off the dollar index DXY, -0.13%, which dropped 1.2% to 104.72, its lowest since August.

Gold futures GC00, -0.30% jumped 3.1% on Thursday with the most-active contract GCG23, -0.30% settling at its highest level since August. It was also the largest one-day percentage gain since April 2020, according to Dow Jones Market Data.

Meanwhile, more Chinese cities eased antivirus restrictions and police patrolled their streets Thursday as the government tried to defuse public anger over some of the world’s most stringent COVID measures and head off more protests.

Companies in focus

 Jamie Chisholm contributed to this article.

Wed, 30 Nov 2022 20:52:00 -0600 en-US text/html https://www.marketwatch.com/story/u-s-stock-futures-pause-after-powell-inspired-bounce-11669888101
Killexams : Services PMI® at 56.5%; November 2022 Services ISM® Report On Business®

Business Activity Index at 64.7%; New Orders Index at 56%; Employment Index at 51.5%; provider Deliveries Index at 53.8%

TEMPE, Ariz., Dec. 5, 2022 /PRNewswire/ -- Economic activity in the services sector grew in November for the 30th month in a row — with the Services PMI® registering 56.5 percent — say the nation's purchasing and supply executives in the latest Services ISM® Report On Business®.

The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: "In November, the Services PMI® registered 56.5 percent, 2.1 percentage points higher than October's practicing of 54.4 percent. The Business Activity Index registered 64.7 percent, a substantial increase of 9 percentage points compared to the practicing of 55.7 percent in October. The New Orders Index figure of 56 percent is 0.5 percentage point lower than the October practicing of 56.5 percent.

"The provider Deliveries Index registered 53.8 percent, 2.4 percentage points lower than the 56.2 percent reported in October. (Supplier Deliveries is the only ISM® Report On Business® index that is inversed; a practicing of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

"The Prices Index was down 0.7 percentage point in November, to 70 percent. Services businesses still continue to struggle to replenish their stocks, as the Inventories Index contracted for the sixth consecutive month; the practicing of 47.9 percent is up 0.7 percentage point from October's figure of 47.2 percent. The Inventory Sentiment Index (44.2 percent, down 2.2 percentage points from October's practicing of 46.4 percent) contracted for the fourth month in a row.

"According to the Services PMI®, 13 industries reported growth. The composite index indicated growth for the 30th consecutive month after a two-month contraction in April and May 2020. Growth continues at a faster rate for the services sector, which has expanded for all but two of the last 154 months. The sector had an uptick in growth after pulling back in the previous two months. The rate of growth increased in November due to increases in business activity and employment."

Nieves continues, "Supplier deliveries continued to slow, albeit at a slower rate in November. Based on comments from Business Survey Committee respondents, increased capacity and shorter lead times have resulted in a continued improvement in supply chain and logistics performance. A new fiscal period and the holiday season have contributed to stronger business activity and increased employment."

INDUSTRY PERFORMANCE
The 13 services industries reporting growth in November — listed in order — are: Real Estate, Rental & Leasing; Mining; Agriculture, Forestry, Fishing & Hunting; Other Services; Construction; Health Care & Social Assistance; Public Administration; Retail Trade; Professional, Scientific & Technical Services; Accommodation & Food Services; Utilities; Transportation & Warehousing; and Educational Services. The three industries reporting a decrease in the month of November are: Management of Companies & Support Services; Wholesale Trade; and Information.

WHAT RESPONDENTS ARE SAYING

  • "Business is doing well, almost back to pre-coronavirus pandemic volumes." [Agriculture, Forestry, Fishing & Hunting]

  • "Generally unchanged month over month. New business requests are solid, with costs rising steadily for materials, meals and lodging." [Construction]

  • "Still long lead times for service-related needs. A slight downturn in fuel costs in this region, but we are still experiencing supply chain shortages and delays." [Educational Services]

  • "The labor forecast has improved, which has led to our ability to increase caseload, translating to higher surgical volumes. Some medical/surgical goods categories remain constrained — Vacutainer (blood collection tubes), wound care kits, syringes, hypodermic needles — but seeing modest improvement in other categories. Despite the uptick in RSV (respiratory syncytial virus) and flu, we anticipate that business activity will remain strong through the end of 2022." [Health Care & Social Assistance]

  • "The demand for energy services remains very strong for the foreseeable future." [Mining]

  • "No change from previous months — strong RFQ activity from our customers, but we're struggling to get electronic materials. Suppliers are still holding to lead times between eight and 12 months for simple components. We don't see this improving in 2023." [Other Services]

  • "Job openings are seemingly continuing to decrease, but with demand for top talent still high and availability still rather scarce, the opportunity for growth is still there." [Professional, Scientific & Technical Services]

  • "Overall business is stable. Employment is low and inflation is lower than last month. Supply chain issues are stabilizing." [Retail Trade]

  • "Still struggling with recruitment, though we are starting to see more (higher quality) applicants, and (we are) hopeful the situation will quantitatively change in the first quarter of 2023. There are still struggles with longer-than-usual lead times affecting monthly delivery schedules." [Transportation & Warehousing]

  • "Local, regional and national supply constraints continue to create supply chain complexities and challenges." [Utilities]

  • "Business volume appears to be leveling out based on a month-over-month comparison, although we are up significantly when compared to the same month last year." [Wholesale Trade]

ISM® SERVICES SURVEY RESULTS AT A GLANCE

COMPARISON OF ISM® SERVICES AND ISM® MANUFACTURING SURVEYS

NOVEMBER 2022

Index

 Services PMI®

Manufacturing PMI®

Series
Index

Nov

Series
Index

Oct

Percent
Point
Change

Direction

Rate of
Change

Trend*

(Months)

Series
Index

Nov

Series
Index

Oct

Percent
Point
Change

Services
PMI
®

56.5

54.4

+2.1

Growing

Faster

30

49.0

50.2

-1.2

Business
Activity/

Production

64.7

55.7

+9.0

Growing

Faster

30

51.5

52.3

-0.8

New Orders

56.0

56.5

-0.5

Growing

Slower

30

47.2

49.2

-2.0

Employment

51.5

49.1

+2.4

Growing

From
Contracting

1

48.4

50.0

-1.6

Supplier
Deliveries

53.8

56.2

-2.4

Slowing

Slower

42

47.2

46.8

+0.4

Inventories

47.9

47.2

+0.7

Contracting

Slower

6

50.9

52.5

-1.6

Prices

70.0

70.7

-0.7

Increasing

Slower

66

43.0

46.6

-3.6

Backlog of
Orders

51.8

52.2

-0.4

Growing

Slower

23

40.0

45.3

-5.3

New Export
Orders

38.4

47.7

-9.3

Contracting

Faster

2

48.4

46.5

+1.9

Imports

59.5

50.4

+9.1

Growing

Faster

3

46.6

50.8

-4.2

Inventory
Sentiment

44.2

46.4

-2.2

Too Low

Faster

4

N/A

N/A

N/A

Customers'
Inventories

N/A

N/A

N/A

N/A

N/A

N/A

48.7

41.6

+7.1

OVERALL ECONOMY

Growing

Faster

30

Services Sector

Growing

Faster

30

Services ISM® Report On Business® data is seasonally adjusted for the Business Activity, New Orders, Employment and Prices indexes. Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Inventories indexes.
*Number of months moving in current direction.

COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY

Commodities Up in Price
Batteries; Construction Services; Diesel Fuel (2); Electrical Components (22); Fuel* (2); Gasoline* (2); Janitorial Maintenance Supplies; Labor (24); Labor — Full-Time; Labor — Technology and Web Related; Needles and Syringes; Pallets; and Services.

Commodities Down in Price
Fuel* (4); Gasoline* (4); and Steel Products.

Commodities in Short Supply
Chemicals; Concrete (2); Electronic Components; Janitorial Supplies; Labor; Plastic Products; Semiconductors (2); Transformers (3); and Vehicles (5).

Note: The number of consecutive months the commodity is listed is indicated after each item. *Indicates both up and down in price.

NOVEMBER 2022 SERVICES INDEX SUMMARIES

Services PMI®

In November, the Services PMI® registered 56.5 percent, a 2.1-percentage point increase compared to the October practicing of 54.4 percent. The 12-month average is 57.2 percent, reflecting consistently strong growth in the services sector, which has expanded for 30 consecutive months. A practicing above 50 percent indicates the services sector economy is generally expanding; below 50 percent indicates it is generally contracting.

A Services PMI® above 50.1 percent, over time, generally indicates an expansion of the overall economy. Therefore, the November Services PMI® indicates the overall economy has followed the same path as the services sector: expansion for 30 straight months following two months of contraction and a preceding period of 122 months of growth. Nieves says, "The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for November (56.5 percent) corresponds to a 2.3-percent increase in real gross domestic product (GDP) on an annualized basis."

SERVICES PMI® HISTORY

Month

Services PMI®

Month

Services PMI®

Nov 2022

56.5

May 2022

55.9

Oct 2022

54.4

Apr 2022

57.1

Sep 2022

56.7

Mar 2022

58.3

Aug 2022

56.9

Feb 2022

56.5

Jul 2022

56.7

Jan 2022

59.9

Jun 2022

55.3

Dec 2021

62.3

Average for 12 months – 57.2

High – 62.3

Low – 54.4

Business Activity

ISM®'s Business Activity Index registered 64.7 percent in November, a notable increase of 9 percentage points from the practicing of 55.7 percent in October, indicating growth for the 30th consecutive month. Comments from respondents include: "Gaining more business" and "Demand for our services is increasing."

The 13 industries reporting an increase in business activity for the month of November — listed in order — are: Real Estate, Rental & Leasing; Accommodation & Food Services; Mining; Other Services; Public Administration; Construction; Agriculture, Forestry, Fishing & Hunting; Health Care & Social Assistance; Information; Professional, Scientific & Technical Services; Retail Trade; Transportation & Warehousing; and Wholesale Trade. The one industry reporting a decrease in business activity for the month of November is Finance & Insurance.

Business Activity

%Higher

%Same

%Lower

Index

Nov 2022

33.4

56.9

9.7

64.7

Oct 2022

28.8

53.0

18.2

55.7

Sep 2022

32.5

56.7

10.8

59.1

Aug 2022

27.6

59.7

12.7

60.9

New Orders

ISM®'s New Orders Index registered 56 percent, down 0.5 percentage point from the October practicing of 56.5 percent. New orders grew for the 30th consecutive month after two months of contraction and a preceding period of 128 months of expansion. Comments from respondents include: "New customers added as our business continues to grow" and "Starting new fiscal year; ramping up projects."

Twelve industries reported growth of new orders in November, in the following order: Real Estate, Rental & Leasing; Other Services; Retail Trade; Accommodation & Food Services; Agriculture, Forestry, Fishing & Hunting; Mining; Public Administration; Transportation & Warehousing; Health Care & Social Assistance; Construction; Professional, Scientific & Technical Services; and Utilities. The four industries reporting a decrease in new orders in November are: Management of Companies & Support Services; Wholesale Trade; Information; and Educational Services.

New Orders

%Higher

%Same

%Lower

Index

Nov 2022

30.4

49.6

20.0

56.0

Oct 2022

29.3

52.1

18.6

56.5

Sep 2022

36.8

52.4

10.8

60.6

Aug 2022

30.1

55.7

14.2

61.8

Employment

Employment activity in the services sector grew in November after contracting in October. ISM®'s Employment Index registered 51.5 percent, up 2.4 percentage points from the October practicing of 49.1 percent. Comments from respondents include: "Slow improvement in staffing levels" and "Recruitment fairs have helped enable open positions to be filled."

The nine industries reporting an increase in employment in November — listed in order — are: Mining; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Construction; Public Administration; Health Care & Social Assistance; Professional, Scientific & Technical Services; and Utilities. The six industries reporting a decrease in employment in November — listed in order — are: Management of Companies & Support Services; Transportation & Warehousing; Accommodation & Food Services; Information; Educational Services; and Finance & Insurance.

Employment

%Higher

%Same

%Lower

Index

Nov 2022

21.3

57.9

20.8

51.5

Oct 2022

21.3

54.2

24.5

49.1

Sep 2022

23.7

58.4

17.9

53.0

Aug 2022

20.4

57.2

22.4

50.2

Supplier Deliveries

The provider Deliveries Index registered 53.8 percent, down 2.4 percentage points from the 56.2 percent recorded in October. A practicing above 50 percent indicates slower deliveries, while a practicing below 50 percent indicates faster deliveries. Comments from respondents include: "Supply chain issues easing" and "Reduced production times and transit times."

The nine industries reporting slower deliveries in November — listed in order — are: Real Estate, Rental & Leasing; Mining; Health Care & Social Assistance; Construction; Finance & Insurance; Educational Services; Other Services; Transportation & Warehousing; and Utilities. The six industries reporting faster provider deliveries for the month of November — listed in order — are: Wholesale Trade; Retail Trade; Arts, Entertainment & Recreation; Accommodation & Food Services; Information; and Professional, Scientific & Technical Services.

Supplier Deliveries

%Slower

%Same

%Faster

Index

Nov 2022

17.8

71.9

10.3

53.8

Oct 2022

18.8

74.8

6.4

56.2

Sep 2022

18.1

71.6

10.3

53.9

Aug 2022

20.6

67.8

11.6

54.5

Inventories

The Inventories Index contracted in November for the sixth consecutive month after four straight months of growth preceded by an eight-month period of contraction. The practicing of 47.9 percent was a 0.7-percentage point increase from the 47.2 percent reported in October. Of the total respondents in November, 34 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Trying to unload back stock purchased during provider shortage period" and "Supply chain is improving; production and services are up." Also: "No need to stock up more than needed, as inventory is being used faster than expected."

The nine industries reporting an increase in inventories in November — listed in order — are: Arts, Entertainment & Recreation; Public Administration; Agriculture, Forestry, Fishing & Hunting; Utilities; Information; Wholesale Trade; Educational Services; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The six industries reporting a decrease in inventories in November — listed in order — are: Accommodation & Food Services; Real Estate, Rental & Leasing; Management of Companies & Support Services; Mining; Retail Trade; and Construction.

Inventories

%Higher

%Same

%Lower

Index

Nov 2022

17.2

61.4

21.4

47.9

Oct 2022

17.3

59.8

22.9

47.2

Sep 2022

14.2

59.8

26.0

44.1

Aug 2022

13.9

64.5

21.6

46.2

Prices

Prices paid by services organizations for materials and services increased in November for the 66th consecutive month, with the index registering 70 percent, 0.7 percentage point lower than the 70.7 percent recorded in October. The Prices Index continues to indicate movement toward equilibrium, with a fifth consecutive practicing near or below 70 percent, following nine straight months of readings above 80 percent.

Sixteen services industries reported an increase in prices paid during the month of November, in the following order: Accommodation & Food Services; Real Estate, Rental & Leasing; Health Care & Social Assistance; Management of Companies & Support Services; Public Administration; Educational Services; Utilities; Information; Agriculture, Forestry, Fishing & Hunting; Other Services; Professional, Scientific & Technical Services; Arts, Entertainment & Recreation; Mining; Retail Trade; Transportation & Warehousing; and Finance & Insurance. The two industries reporting prices unchanged in the month of November are: Wholesale Trade; and Construction. No industry reported a decrease in prices for November.

Prices

%Higher

%Same

%Lower

Index

Nov 2022

42.7

50.7

6.6

70.0

Oct 2022

47.5

45.6

6.9

70.7

Sep 2022

42.6

51.2

6.2

68.7

Aug 2022

49.3

42.6

8.1

71.5

NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.

Backlog of Orders

The ISM® Services Backlog of Orders Index grew in November for the 23rd consecutive month. The index registered 51.8 percent, 0.4 percentage point lower than the October practicing of 52.2 percent. Of the total respondents in November, 32 percent indicated they do not measure backlog of orders. Respondent comments include: "Supply chain transportation improvements" and "Slightly more capacity in the supply chain."

The eight industries reporting an increase in order backlogs in November — listed in order — are: Accommodation & Food Services; Real Estate, Rental & Leasing; Information; Other Services; Educational Services; Health Care & Social Assistance; Construction; and Professional, Scientific & Technical Services. The five industries reporting a decrease in order backlogs in November are: Management of Companies & Support Services; Finance & Insurance; Public Administration; Wholesale Trade; and Utilities.

Backlog of Orders

%Higher

%Same

%Lower

Index

Nov 2022

19.4

64.7

15.9

51.8

Oct 2022

25.2

53.9

20.9

52.2

Sep 2022

23.2

58.5

18.3

52.5

Aug 2022

21.7

64.5

13.8

53.9

New Export Orders

Orders and requests for services and other non-manufacturing activities to be provided outside of the U.S. by domestically based companies contracted in November for the second consecutive month after an eight-month period of growth. The New Export Orders Index registered 38.4 percent, its lowest practicing since April 2020 (36.3 percent) and a 9.3-percentage point decrease from the 47.7 percent reported in October. Of the total respondents in November, 78 percent indicated they do not perform, or do not separately measure, orders for work outside of the U.S.

The three industries reporting an increase in new export orders in November are: Mining; Utilities; and Wholesale Trade. The eight industries reporting a decrease in new export orders in November — listed in order — are: Real Estate, Rental & Leasing; Management of Companies & Support Services; Construction; Agriculture, Forestry, Fishing & Hunting; Other Services; Accommodation & Food Services; Educational Services; and Transportation & Warehousing. Seven industries indicated no change in new export orders in November.

New Export Orders

%Higher

%Same

%Lower

Index

Nov 2022

9.1

58.6

32.3

38.4

Oct 2022

15.1

65.1

19.8

47.7

Sep 2022

35.0

60.2

4.8

65.1

Aug 2022

26.5

70.9

2.6

61.9

Imports

The Imports Index grew for the third consecutive month in November after three previous months of contraction, registering 59.5 percent, up 9.1 percentage points from October's practicing of 50.4 percent. Seventy-five percent of respondents reported that they do not use, or do not track the use of, imported materials.

The six industries reporting an increase in imports for the month of November — listed in order — are: Real Estate, Rental & Leasing; Information; Retail Trade; Construction; Wholesale Trade; and Utilities. The five industries that reported a decrease in imports in November are: Arts, Entertainment & Recreation; Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Educational Services; and Health Care & Social Assistance. Seven industries reported no change in imports in November.

Imports

%Higher

%Same

%Lower

Index

Nov 2022

25.3

68.4

6.3

59.5

Oct 2022

5.7

89.3

5.0

50.4

Sep 2022

10.1

82.4

7.5

51.3

Aug 2022

8.0

80.3

11.7

48.2

Inventory Sentiment

The ISM® Services Inventory Sentiment Index contracted in November for the fourth straight month and the 18th time in the last 20 months. The index registered 44.2 percent, a 2.2-percentage point decrease from October's figure of 46.4 percent. This practicing indicates that respondents feel their inventories are too low when correlated to business activity levels.

The eight industries reporting sentiment that their inventories were too high in November — listed in order — are: Accommodation & Food Services; Arts, Entertainment & Recreation; Wholesale Trade; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Construction; Health Care & Social Assistance; and Utilities. The five industries reporting a feeling that their inventories were too low in November are: Real Estate, Rental & Leasing; Other Services; Management of Companies & Support Services; Professional, Scientific & Technical Services; and Educational Services.

Inventory Sentiment

%Too High

%About Right

%Too Low

Index

Nov 2022

16.8

54.7

28.5

44.2

Oct 2022

19.7

53.4

26.9

46.4

Sep 2022

18.9

56.5

24.6

47.2

Aug 2022

22.9

48.3

28.8

47.1

About This Report

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of November 2022.

The data presented herein is obtained from a survey of supply executives in the services sector based on information they have collected within their respective organizations. ISM® makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.

Data and Method of Presentation

The Services ISM® Report On Business® (formerly the Non-Manufacturing ISM® Report On Business®) is based on data compiled from purchasing and supply executives nationwide. Membership of the Services Business Survey Committee (formerly Non-Manufacturing Business Survey Committee) is diversified by NAICS, based on each industry's contribution to gross domestic product (GDP). The Services Business Survey Committee responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing & Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation & Warehousing; Information; Finance & Insurance; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; Management of Companies & Support Services; Educational Services; Health Care & Social Assistance; Arts, Entertainment & Recreation; Accommodation & Food Services; Public Administration; and Other Services (services such as Equipment & Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning & Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services). The data are weighted based on each industry's contribution to GDP. According to the BEA estimates for 2020 GDP (released December 22, 2021), the six largest services sectors are: Real Estate, Rental & Leasing; Government; Professional, Scientific, & Technical Services; Health Care & Social Assistance; Information; and Finance & Insurance. Beginning in February 2020 with January 2020 data, computation of the indexes is accomplished utilizing unrounded numbers.

Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and provider Deliveries), this report shows the percentage reporting each response and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality.

The Services PMI® is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and provider Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index practicing above 50 percent indicates that the services economy is generally expanding; below 50 percent indicates that it is generally declining. provider Deliveries is an exception. A provider Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.

A Services PMI® above 50.1 percent, over time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 50.1 percent, it is generally declining. The distance from 50 percent or 50.1 percent is indicative of the strength of the expansion or decline.

The Services ISM® Report On Business® survey is sent out to Services Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on U.S. operations for the current month. ISM® receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses to provide the most accurate picture of current business activity. ISM® then compiles the report for release on the third business day of the following month.

The industries reporting growth, as indicated in the Services ISM® Report On Business® monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.

ISM ROB Content

The Institute for Supply Management® ("ISM") Report On Business® (Manufacturing, Services and Hospital reports) ("ISM ROB") contains information, text, files, images, video, sounds, musical works, works of authorship, applications, and any other materials or content (collectively, "Content") of ISM ("ISM ROB Content"). ISM ROB Content is protected by copyright, trademark, trade secret, and other laws, and as between you and ISM, ISM owns and retains all rights in the ISM ROB Content. ISM hereby grants you a limited, revocable, nonsublicensable license to access and display on your individual device the ISM ROB Content (excluding any software code) solely for your personal, non-commercial use. The ISM ROB Content shall also contain Content of users and other ISM licensors. Except as provided herein or as explicitly allowed in writing by ISM, you shall not copy, download, stream, capture, reproduce, duplicate, archive, upload, modify, translate, publish, broadcast, transmit, retransmit, distribute, perform, display, sell, or otherwise use any ISM ROB Content.

Except as explicitly and expressly permitted by ISM, you are strictly prohibited from creating works or materials (including, but not limited to: tables, charts, data streams, time-series variables, fonts, icons, link buttons, wallpaper, desktop themes, online postcards, montages, mashups and similar videos, greeting cards, and unlicensed merchandise) that derive from or are based on the ISM ROB Content. This prohibition applies regardless of whether the derivative works or materials are sold, bartered, or given away. You shall not either directly or through the use of any device, software, internet site, web-based service, or other means remove, alter, bypass, avoid, interfere with, or circumvent any copyright, trademark, or other proprietary notices marked on the Content or any digital rights management mechanism, device, or other content protection or access control measure associated with the Content including geo-filtering mechanisms. Without prior written authorization from ISM, you shall not build a business utilizing the Content, whether or not for profit.

You shall not create, recreate, distribute, incorporate in other work, or advertise an index of any portion of the Content unless you receive prior written authorization from ISM. Requests for permission to reproduce or distribute ISM ROB Content can be made by contacting in writing at: ISM Research, Institute for Supply Management, 309 W. Elliot Road, Suite 113, Tempe, AZ 85284-1556, or by emailing kcahill@ismworld.org; subject: Content Request.

ISM shall not have any liability, duty, or obligation for or relating to the ISM ROB Content or other information contained herein, any errors, inaccuracies, omissions or delays in providing any ISM ROB Content, or for any actions taken in reliance thereon. In no event shall ISM be liable for any special, incidental, or consequential damages, arising out of the use of the ISM ROB. Report On Business®, Manufacturing PMI®, Services PMI®, and Hospital PMI® are registered trademarks of Institute for Supply Management®. Institute for Supply Management® and ISM® are registered trademarks of Institute for Supply Management, Inc.

About Institute for Supply Management®

Institute for Supply Management® (ISM®) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM® Report On Business®, its highly regarded certification programs and the ISM® Advance Digital Platform. This report has been issued by the association since 1931, except for a four-year interruption during World War II.

The full text version of the Services ISM® Report On Business® is posted on ISM®'s website at www.ismrob.org on the third business day* of every month after 10:00 a.m. ET.

The next Services ISM® Report On Business® featuring December 2022 data will be released at 10:00 a.m. ET on Friday, January 6, 2023.

*Unless the New York Stock Exchange is closed.

Contact:

Kristina Cahill

Report On Business® Analyst

ISM®, ROB/Research Manager

Tempe, Arizona

+1 480.455.5910

Email: kcahill@ismworld.org

Institute for Supply Management logo. (PRNewsFoto/Institute for Supply Management) (PRNewsfoto/Institute for Supply Management)

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SOURCE Institute for Supply Management

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