US manufacturing activity slowed down in November, according to the latest data from the Institute for Supply Management (ISM). The ISM Manufacturing Index fell to 48.2 in November from 48.7 in October, missing consensus expectations of a slight improvement to 49.0. This marks the third consecutive month of contraction in new orders, which decreased by 2 percentage points to 47.4. Employment also declined, down to 44 from October’s 46.

The only bright spot in the report was a modest increase in prices paid, which ticked up to 58.5 from 58.0. This is the highest level since July and suggests that raw material costs may be starting to rise again after a period of relative stability. However, it’s worth noting that this increase was lower than the consensus expectation of a small drop to 57.5.

The slowdown in manufacturing activity is likely due to a combination of factors, including ongoing supply chain disruptions and weak global demand. The ongoing trade tensions between the US and China, as well as the impact of COVID-19 on global economies, are also likely to be contributing factors.

Despite the slowdown in manufacturing, the ISM Prices Paid Index suggests that raw material costs may be starting to rise again. This could be a positive sign for the economy, as it suggests that inflationary pressures may be building. However, it’s important to note that this increase is relatively modest and may not necessarily translate into higher prices for consumers.

Overall, the latest ISM manufacturing report paints a mixed picture of the US economy. While new orders and employment continued to contract, prices paid showed a small increase. The slowdown in manufacturing activity may be a cause for concern, but the modest increase in raw material costs could be a sign of things to come. As always, it’s important to keep an eye on these indicators and their impact on the broader economy.