Milwaukee area manufacturing activity declined in November, continuing its eight-month streak of negative performance, according to the latest Marquette-ISM Report on Manufacturing.
The seasonally adjusted Purchasing Managers Index was at 45.34 in November, down from 46.66 in October.
A PMI of more than 50 indicates growth, while less than 50 signals contraction. The index has been at or above 50 for only 18 of the past 27 months. It increased from 39.44 in September to 46.66 in October, but again declined in November.
In the November survey, manufacturers responded:
“There is very pessimistic market demand. Customers are running inventory lean to year end, but early 2016 orders are significantly lagging.”
“Most of the customers and suppliers indicate that business is relatively flat and not much improvement expected in the future in some aspects.”
“Continued erosion in the energy market has caused a significant reduction in incoming orders in 2015 and as a result, the outlook for 2016 is not optimistic.”
“There are expectations that there will be higher demand in the future.”
New orders, production, employment, prices and backlog of orders grew in November. Supplier deliveries, customers’ inventories, exports and imports saw growth this month.
Blue collar employment was at 44.5 in November, declining less than in October, when it was 41.4. White collar employment measured 51.9 during the month, growing from 55.1 in October.
And the six-month outlook on business conditions showed 25 percent expect positive conditions, 58.3 percent expect the same conditions and 16.7 percent expect worse conditions in the next six months.
