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LONDON – Euro zone business activity declined for a fifth month in November, suggesting the economy was sliding into a mild recession as consumers cut spending amid surging inflation, a survey showed.

S&P Global’s final composite Purchasing Managers’ Index (PMI) for the euro zone, seen as a good guide to economic health, nudged up to 47.8 in November from October’s 23-month low of 47.3, matching a preliminary estimate.

Anything below 50 indicates contraction.

“A fifth consecutive monthly falling output signalled by the PMI adds to the likelihood that the euro zone is sliding into recession,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“However, at present the downturn remains only modest, with an easing in the overall rate of contraction in November means so far the region looks set to see GDP contract by a mere 0.2%.”

Economists gave a median 78% chance of a recession in the bloc within a year in a Reuters poll last month and predicted the economy would contract 0.4% this quarter.

With demand falling again and scant prospect of an imminent turnaround firms scaled back on hiring – the employment index slipped to 51.8 from 52.5. Unemployment in the region dipped to 6.5% in October, official data showed on Thursday.

A PMI covering the bloc’s dominant services industry nudged down to 48.5 from 48.6, its lowest practicing since early 2021 and below the preliminary 48.6 estimate.

Still, the input and output prices index both fell suggesting inflationary pressures may have already peaked, likely welcome news to policymakers at the European Central Bank. The output prices index was a 3-month low of 62.3.

Inflation in the bloc was a lower-than-expected 10.0% in November, official preliminary data showed last week, still five times the ECB‘s 2% target.

The central bank has been raising interest rates to try and tame price rises and is expected to add another 50 basis points later this month.

“With the surveys also bringing signs of inflation having peaked, the headwind on demand from rising prices should also start to ease in coming months, barring severe weather over the winter, hinting that any recession may be both brief and relatively mild,” Williamson said.

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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 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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

^†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.

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 give 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.

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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.

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

CAIRO, Dec 5 (Reuters) - Egypt's non-oil private sector shrank in November at its sharpest rate since the outbreak of the coronavirus pandemic in early 2020, with a weaker currency weighing on the cost and the availability of foreign goods, a survey showed on Monday.

The S&P Global Egypt Purchasing Managers' Index (PMI) slid to 45.4 in November from 47.7 in October, well below the 50.0 threshold that separates growth from contraction.

It was the second lowest practicing since the pandemic dragged the index down in June, 2020, and the 24th consecutive month of contraction.

"Central to the downturn was a rapid decrease in business activity, as survey panellists reported that accelerated cost rises and falling new orders forced them to cut output," S&P Global said.

Egypt has been suffering a severe shortage of foreign currency despite a 14.5% devaluation on Oct. 27 and the announcement of a $3 billion support package with the International Monetary Fund. The lack of dollars has tightened the flow of imports for factory and retail inputs.

"The pound's depreciation against the US dollar led to a marked increase in prices paid for raw materials, which have already been exacerbated by import restrictions since early-2022," said S&P Global economist David Owen.

The PMI's sub-indices for both overall input prices and purchase prices deteriorated to 72.4, their highest since July 2018, from October's 63.5.

The sub-index for future output expectations improved to 55.7 after falling to a record low of 52.2 in October.

"Concerns about high inflation, rising interest rates, currency weakness and a global economic slowdown remained dampeners on sentiment," S&P said.

Reporting by Patrick Werr; Editing by Toby Chopra

Our Standards: The Thomson Reuters Trust Principles.

NAIROBI (Reuters) - Kenya’s private sector activity rose in November after falling a month earlier, helped by improved output in the agriculture and construction sectors, a survey showed on Monday

The S&P Global Kenya Purchasing Managers’ Index (PMI) rose to 50.9 in November from 50.2 a month earlier. It stood at 51.7 in September. Readings above 50.0 signal growth in business activity, while those below that point to a contraction.

“Sector data showed that growth was broad-based in November, led by construction and agriculture,” S&P Global said in comments accompanying the survey.

Kenya’s inflation fell to 9.5% year-on-year in November from 9.6% a month earlier, data from the statistics office showed, its first drop since February, helped by easing prices of food and fuel.

The survey showed that input costs rose, due to higher import costs due to a weaker shilling versus the dollar, higher taxation and transport costs.