Business World

The U.S. manufacturing sector grew in November for the fourth consecutive month, but at a slower pace than anticipated, according to an industry report released on Tuesday.

The Institute for Supply Management said its index of national factory activity decelerated to 53.6 in November from 55.7 in October. The median forecast of 70 economists surveyed by Reuters was for a reading of 55.0 in November.

Readings above 50 indicate expansion in the manufacturing sector, while numbers below 50 show contraction.

The ISM report was “a bit less-than-expected but overall still a strong number when added to the previous monthly levels that were greater than 50,” said Tom Sowanick, chief investment officer with the Omnivest Group in Princeton, New Jersey.

“Note that China ISM was also up last night which confirms that we are in a global recovery,” Sowanick added.

The ISM report also said its employment index for the manufacturing industry slipped to 50.8 in November from 53.1 in October, which had been the strongest showing since April 2006.

The U.S. dollar trimmed gains against the yen after the manufacturing report.

Prices paid slipped to 55.0 in November from 65.0 in October.

New orders rose to 60.3 in November from a 58.5 reading in October.

Some economists warn that although the brisk rebound of new orders hints that capital spending will recover, because industrial output is so depressed, companies may not ramp up spending much, if at all.

(Reporting by John Parry; Editing by Chizu Nomiyama)

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