ISM Manufacturing Sample Stays Strong

Rates of monthly growth in ISM's manufacturing sample remain extremely strong and well beyond other reports, especially government data which have been flat. ISM's composite index held very strong near recovery highs, at 58.7 in November vs 59.0 in October. New orders came in at a blistering 66.0 vs October's 65.8 with backlog orders up 2.0 points to 55.0 which is very strong for this reading. Employment growth remained solid, at 54.9 vs 55.5, as did production growth at 64.4 vs 64.8. Delivery times slowed in a further indication of strength while inventories held steady. A notable reading in today's report is contraction in input prices, at 44.5 vs October's 53.5. This is the first price contraction since July last year and reflects falling oil prices.

It's difficult to make conclusions based on ISM's sample which, again, has been reporting some of the strongest readings of any manufacturing indicator on the calendar.

Recent History Of This Indicator:
The composite index from the ISM manufacturing survey stands out starkly from the net result of other anecdotal surveys on October's manufacturing sector, showing outstanding growth at a composite index of 59.0 versus 56.6 in September. This level matches August's level with the two the strongest since February 2011. New orders, the most important reading in the report, rose a strong 5.8 points to a blistering 65.8. Production, at 64.8, was strong and in line with orders.