In November, U.S. manufacturing faced another decline, marking the eighth consecutive month of reduced output. The Institute for Supply Management (ISM) reported that this continued a trend where 24 out of the past 25 months have seen decreased activity. The latest reading stood at 48.4, below the 50-point threshold indicating growth, though an improvement of 1.9 points from October suggested a slower pace of contraction.
Photo: Dreamstime.
Timothy R. Fiore, chairman of ISM, pointed out that while demand remains subdued, there are signs of stabilisation. Production continued to decrease, but at a slower rate, and the reduction in employment also eased. Positive developments included a return to growth for new orders and a moderate increase in export orders, although these were still in contraction. Weak order backlogs across the manufacturing sector suggested that a full recovery could take two to three more months.
Out of 18 industries tracked by ISM, only three reported growth, with the furniture sector being one of the industries to face setbacks. After four months of growth from June to September, furniture experienced a downturn in new orders and production in November. It also recorded the second-largest employment decrease, following a similar trend in October.
The furniture sector was one of the industries to see slower delivery times from suppliers. It reported no change in inventory levels and was among eight industries to state that customers' inventory levels were too low. Prices for raw materials in the furniture industry remained stable.
This data highlights the ongoing struggles within the U.S. manufacturing sector, with the furniture industry particularly affected. Despite periods of resilience earlier in the year, current challenges in demand and production suggest that a recovery may not be imminent and could be several months away.
Source: www.furnituretoday.com