WASHINGTON – American factories grew at a slower pace last month and there are concerns surging coronavirus infections will endanger an economic recovery.
The Institute of Supply Management, an association of purchasing managers, reported Tuesday its manufacturing index dipped to 57.5 in November from 59.3 in October. Any reading above 50 signals manufacturing is expanding. The ISM index plunged in the spring but has bounced back and now shows factories on a six-month winning streak.
New orders and production grew more slowly last month. Hiring dropped, reversing a gain in October. New export orders grew faster. Sixteen of 18 industries surveyed reported growth last month, led by apparel and mineral manufacturers.
“For now, the manufacturing sector appears to be weathering another round of virus outbreaks fairly well,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “However, the outlook is uncertain given targeted restrictions and shutdowns, at home and abroad, could disrupt activity and weigh on demand.”
Single-family builds aid US construction
U.S. construction spending jumped 1.3% in October, again on the strength of single-family home building.
The October gain follows a downward revision in September to a 0.5% decline from a previous estimate of a 0.3% gain, the Commerce Department reported Tuesday. August’s number was also revised significantly upward and spending in October was stronger than economists had expected.
Single-family home building has been a consistent bright spot for months as a lack of new homes has pushed builders to ramp up projects. Single-family home construction rose 5.6% in October, helping to boost a 2.9% increase in total private residential construction for the month.
Nonresidential private construction fell 0.7%, with the category that includes hotels and other lodging falling 3.1%.
