TEMPE, Ariz. – The manufacturing sector shrunk in November after months of being at near stagnation.

The Institute for Supply Management’s November report measured the manufacturing sector at 49%, its lowest reading since May 2020 and a 1.2% loss over October.

“The U.S. manufacturing sector dipped into contraction, with the index at its lowest level since the coronavirus pandemic recovery began,” said Timothy R. Fiore, ISM chairman. “With panelists reporting softening new order rates over the previous six months, the November index reading reflects companies’ preparing for future lower output.”

Of the 18 manufacturing industries recognized by the ISM, just six reported growth. Furniture and wood products were both among those to record a loss. Furniture has reported a decline every month since May.

New orders fell across the manufacturing sector as a whole, with 14 individual industries seeing a decline. Surprisingly, furniture reported no change from October, finally ending its loss streak.

Furniture was one of seven industries to report a loss in production, suffering the third biggest contraction. Furniture and wood products both reported no change in employment.

Positively, the delivery performance of suppliers to manufacturing organizations was faster for the second straight month in November, with both furniture and wood products seeing improvements.

Furniture reported no change in inventories.

The prices for raw materials declined for nearly all of manufacturing. This is only the second time prices have dropped in 29 months.

Furniture and wood products both reported lower backlogs for the month, with the overall index shrinking more than 5% from October.

“Managing head counts and total supply chain inventories remain primary goals,” said Fiore. “Order backlogs, prices and now lead times are declining rapidly, which should bring buyers and sellers back to the table to refill order books based on 2023 business plans.”

Source: https://www.furnituretoday.com/