The November ISM PMI has declined again.

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The prices paid increased to 46.7 from 45.5 because the producers reduced local raw material and imported more from abroad.  The PMI decreased to 48.1 and was in contraction mode for 4 consecutive months.

The new order decreased because of a reduction in new export order.  The previous new export order (significant increment) was just an aberration.  The reduction in customers’ inventories was due to the fulfillment of the existing orders and, thus, the backlog of order also decreased.  The producers still increased  their production by 2.9 so that they could continue to increase the customers’ inventories to fulfill existing orders.  However, the manufacturing employment deteriorated and this was a big concern because it could reflect the overall employment in the US (see chart below).  This reduction in employment meant that the producers were not very optimistic about their businesses and the willingness to hire and train workers declined.

In conclusion, the de-Americanization in China supply china was hurting the US manufacturing industry and the USA’s anti-China stance was helping China to expand its manufacturing industry.

http://sg-stock.blogspot.com/2019/12/china-pmi-had-expanded-as-we-had.html