The ISM Manufacturing Index missed economists’ expectations as it fell to a reading of 49.0 in November, its first contractionary reading (below 50) since May 2020. Of the 18 manufacturing industries surveyed, 12 were in contraction while only six reported growth last month. Respondents stated customer demand is slowing, which kept the New Orders component in contraction territory for the third straight month (bottom graph). This indicator now joins the already long list of recessionary warning flags as the leading macroeconomic evidence continues to deteriorate.
Eli Petropoulos, CFA – Sr. Market Analyst
