Another Positive Economic News Story? Uh, No Such Luck!

The Institute for Supply Management's monthly index of manufacturing activity fell to 36.2 from October’s 38.9. The reading is worse than Wall Street economists’ expectations of 38.4, according to a survey by Thomson Reuters. (A figure below 50 indicates the sector is contracting.)

The November reading is the lowest since May 1982, the economy was in the midst of a painful recession at that time. The survey's new orders index fell to 27.9 from 32.2, the report said, its lowest level since June 1980. The production index fell to 31.5 from 34.6, its third month of decline.

Manufacturing employers continue to cut jobs, the survey found. The employment index fell to 34.2 from 34.6, its fourth straight drop. Manufacturers have been hit hard by the housing slump and financial crisis, which have led to cutbacks in business and consumer spending. ❖