The US ISM manufacturing PMI contracted for the ninth consecutive month in November

The U.S. manufacturing sector was in contraction territory for the ninth consecutive month in November. Factories are facing the dual pressure of falling orders and rising raw material costs under the continued drag of import tariffs. Data released by the Institute for Supply Management (ISM) on Monday showed that the manufacturing PMI fell to 48.2 in November from 48.7 in October. The index is below the 50-line of boom and bust, indicating that the manufacturing industry is in contraction, and the manufacturing industry accounts for 10.1% of the total U.S. economy. However, the index is still higher than 42.3 - a level that ISM pointed out is consistent with the overall economic expansion in the long run. The forward-looking new orders sub-index in the ISM survey fell to 47.4 in November from 49.4 in October, and has been in contraction for nine of the past 10 months. Tariffs have lifted the prices of some goods and dampened demand. Outstanding orders continued to contract, although exports improved slightly. Weak demand meant supply chain pressures eased, with the supplier delivery index falling to 49.3 from 54.2 in October, with a reading below 50 indicating faster deliveries. Despite weak factory orders, manufacturers paid more for raw materials last month, suggesting inflation could remain high for some time.