The latest S&P Global Flash US Manufacturing PMI for November 2024 rose to 48.8, slightly up from 48.5 in October, matching market expectations. While the PMI indicates a continued contraction in the manufacturing sector for the fifth consecutive month, the pace of deterioration has eased, marking the slowest decline since July.

Slower Decline in New Orders and Production

Although production levels fell at a sharply increased rate, other key PMI components showed signs of improvement. The decline in new orders eased, and for the first time in four months, employment in the sector rose. These positive shifts suggest that while challenges remain, there are glimmers of stability in the manufacturing landscape.

Inventory Changes and Delivery Delays

Inventories in the manufacturing sector also fell, but at a reduced rate compared to previous months. On the supply side, delivery times from suppliers lengthened to their longest period in 25 months. This slowdown in delivery was partly driven by increased purchasing of inputs ahead of potential tariffs on imported goods.

Outlook for US Manufacturing

The easing of some of the negative trends, such as the slower decline in new orders and rising employment, could signal a potential stabilization in the US manufacturing sector. However, longer delivery times and ongoing concerns over tariffs indicate that the sector may continue facing challenges in the coming months.