US factory activity slows in November, inventory piling up amid softening demand [View all]
Source: Reuters
U.S. factory activity slowed to a four-month low in November as higher prices because of tariffs on imports restrained demand, leading to a piling up of unsold goods that could hinder growth in the overall economy.
S&P Global said on Friday its flash U.S. manufacturing PMI slipped to 51.9 this month from 52.5 in October. A reading above 50 indicates growth in the manufacturing sector, which accounts for 10.2% of the economy. President Donald Trump has defended his sweeping tariffs as necessary to help revive manufacturing.
Economists polled by Reuters had forecast the manufacturing PMI at 52.0. The survey's measure of new orders received by factories dropped to 51.3 from 54.0 in October, while inventory was the highest in the survey's history.
"Manufacturers reported a worrying combination of slower new orders growth and a record rise in finished goods stock," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "This accumulation of unsold inventory hints at slower factory production expansion in the coming months unless demand revives, which could in turn feed through to lower growth in many service industries."
Read more: https://www.reuters.com/business/us-factory-activity-slows-november-inventory-piling-up-amid-softening-demand-2025-11-21/
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