Manufacturing expanded in November for the 18th straight month, a research group reported, and the rate of growth was faster than economists had been expecting. The Institute for Supply Management said its main index for measuring industrial activity rose to 57.8 in November, a full point above October's level. Analysts had been expecting a reading of 57. A reading of 50 or above in the index means the manufacturing sector is expanding, while a figure below 50 represents a contraction. The report also stated that new order for manufactured goods and indicators of employment improved, and that manufacturers were seeing stronger sales. However, there were concerns that higher prices were eating into profits, particularly costs for energy and commodities used in manufacturing. Several key materials, such as steel and aluminum, remain in short supply, meaning US manufacturers will still have to import them, even at higher prices. This report is compiled from surveys of purchasing and supply executives at more than 400 industrial companies. The survey includes data on supply shortages and price changes in a number of basic materials used in manufacturing, such as aluminum, steel, oil and rubber. Separately, the Commerce Department also reported that consumer spending rose 0.7% in October, up from 0.6% in September, while personal income grew 0.6% as employers hired more people. That compared with a 0.2% rise in September, and marked the biggest increase since May.
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