New Mfg. orders up in November.

TEMPE, AZ -- New orders for manufactured goods were up slightly in November, and production grew 2.3 points to 51.9%. The new orders index stood at 52.6%, above the 50% threshold, signaling expansion, the Institute for Supply Management (ism.ws) reported.

The November PMI, a measure of the nation's productivity, was down 10 basis points sequentially. Inventories were down 30 basis points at 46.9%; customer inventories dropped five points to 49%. Backlogs decreased 4.5 points to 41.5%.

"The rate of growth in the sector was down slightly compared to October," said ISM spokesman Norbert J. Ore. "While other segments of the economy are struggling, manufacturing continues to grow due to continuing strength in new orders, and a recovery in production from last month. Prices, driven higher by energy prices, are once again the major concern."

Prices were up 4.5% in November. Employment contracted during the month.

                      July  Aug.  Sept.  Oct.  Nov.

PMI                   53.8  52.9  52.0   50.9  50.8
New orders            57.5  55.3  53.4   52.5  52.6
Production            55.6  56.1  54.6   49.6  51.9
Inventories           48.5  45.4  41.6   47.2  46.9
Customer inventories  51.0  49.0  50.0   54.0  49.0
Backlogs              52.0  50.5  51.0   46.0  41.5

Source: Institute for Supply Management, Dec. 3, 2007