PessimISM reigns for five months running

Growth in the manufacturing sector slowed for the fifth consecutive month, according to the monthly Institute for Supply Management report on factory activity. The ISM factory index fell to a reading of 50.8% in November from a reading of 50.9% in October, marking its lowest level since January. Readings above 50% signal an economic expansion, while a reading below 50% are a sign that the economy is contracting. The new orders index increased to 52.6% in November from 52.5% in October. Employment fell to 47.8% in November from 52.0% in the prior month. The ISM prices paid index, which measures inflationary pressures within the factory sector, increased from 67.3% from an October reading of 63.0%. "While other segments of the economy are struggling, manufacturing continues to grow due to continuing strength in new orders, and a recovery in production from last month. Prices, driven higher by energy prices, are once again the major concern." said Norbert J. Ore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. The Institute for Supply Management is based in Tempe, Ariz.