WASHINGTON: Economic activity of U.S. manufacturing sector in November contracted to the lowest level since June 2009 when the economy was caught up in the worst financial crisis in decades.
The manufacturing index, also known as the purchasing managers index (PMI), fall to 48.6 in November after registering 50.1 in October, the Institute for Supply Management (ISM) said in a report on Tuesday.
A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction.
The ISM’s new-orders index and the production index decreased while the employment index rose.
The dismal data shows that a strong U.S. dollar and a weak global economy continue constraining factory activities.
Of the 18 manufacturing industries, only five reported growth which included nonmetallic mineral products, food and tobacco.
A business survey conducted by the institute showed continued concerns about less demand from China and European markets were affecting the U.S. business.
