The S&P Global Manufacturing PMI, a lead indicator that tells on key metrics such as output growth and inflation, dropped to 47.4 from 50.1 in October. Anything below 50 means the sector is shrinking. This also marks the biggest decline since August 2021.
Both production and new orders fell for the third month in a row. Recent typhoons disrupted operations, making it harder for companies to produce goods.
Manufacturers also cut jobs for the first time since May, though the reductions were small and mostly came from layoffs or contracts that weren’t renewed.
Costs for materials rose only slightly, at the slowest pace in four months, and companies raised their selling prices only a little.
Even with the weaker activity, businesses were more optimistic about the future. Many expect new projects, more orders, better economic conditions, and stronger marketing efforts to boost their performance. Confidence reached its highest level since November 2024.
