US ISM manufacturing gauge eased to 58.7 for November

Manufacturing sector growth in the US eased ever so slightly in November, alongside a sharp drop in a measure of the prices paid by companies.

The headline ISM purchasing managers’ index for the sector slipped to a reading of 58.7 from the prior month’s level of 59.

Analysts had pencilled in a print of 57.8.

The chief reason for the decline was the sharp drop seen in the sub-index for ‘prices paid’, which decreased to 44.5 from 53.5.

However, the sub-index for production only slipped slightly, moving down to the 64.4 point level from 64.8 for October.

“Comments from the panel are upbeat about strong demand and new orders, with some expressing concerns about West Coast port slowdowns and the threat of a potential dock strike," the ISM highlighted in its statement.

A gauge of new orders edged higher to 66 points, from 65.8.

The employment sub-index retreated to 54.9 from 55.5.