WASHINGTON (AP) – U.S. factories were slightly less busy in November, as production and hiring slowed, though the level of activity remained strong.
The Institute for Supply Management, a trade group of purchasing managers, said Monday that its manufacturing index slipped to 58.7 last month from 59 in October. Any reading above 50 signals expansion. October’s figure matched a three-year high reached in August.
Manufacturing has been a key driver of growth this year, as Americans have ramped up their purchases of autos and electronics.
A measure of new orders rose and order backlogs jumped, both signs that output will likely remain strong in the coming months. A gauge of hiring dipped, but still pointed to solid job gains among manufacturing firms.
Overall, recent manufacturing reports have been mixed. Businesses ordered fewer big-ticket manufactured goods in October, and orders in a key category reflecting business investment plans fell for the second straight month.