1 December 2023
November’s U.S. manufacturing PMI data indicates a downturn, signaling economic stagnation. The S&P Global Manufacturing PMI fell to 49.4, showing a contraction driven by reduced new orders and employment. The ISM Manufacturing PMI remained unchanged at 46.7, missing expectations and reflecting broad sectoral weakness. This slowdown, marked by a significant drop in factory employment not seen since 2009, raises concerns about reduced consumer spending and weaker wage growth. The data points to a stagnating economy with reduced manufacturing activity and potential GDP contraction, underlining the risks of stagflation.