Manufacturing in U.S. Contracts at Fastest Pace Since 2009
- 8 years ago
Manufacturing in the U.S. unexpectedly contracted in November at the fastest pace since the last recession as elevated inventories led to cutbacks in orders and production.
The Institute for Supply Management's index dropped to 48.6, the lowest level since June 2009, from 50.1 in October, a report from the Tempe, Arizona-based group showed Tuesday.
"It's the perfect storm for manufacturing," said Brett Ryan, a U.S. economist at Deutsche Bank Securities Inc. in New York, whose forecast was among the closest in the Bloomberg survey.
The slowdown will probably be short-lived as U.S. consumer spending remains healthy, Bradley Holcomb, chairman of the ISM factory survey, said on a conference call with reporters.
Efforts to trim the remaining inventory overhang will probably come at the expense of growth in future quarters as companies pare orders to align supply with demand.
The Institute for Supply Management's index dropped to 48.6, the lowest level since June 2009, from 50.1 in October, a report from the Tempe, Arizona-based group showed Tuesday.
"It's the perfect storm for manufacturing," said Brett Ryan, a U.S. economist at Deutsche Bank Securities Inc. in New York, whose forecast was among the closest in the Bloomberg survey.
The slowdown will probably be short-lived as U.S. consumer spending remains healthy, Bradley Holcomb, chairman of the ISM factory survey, said on a conference call with reporters.
Efforts to trim the remaining inventory overhang will probably come at the expense of growth in future quarters as companies pare orders to align supply with demand.