U.S manufacturing likely to slow down further

The Institute for Supply Management (ISM) manufacturing index for November in the United States dropped by 1.5 points to 48.6. . The index contracted for first time in last three years. 

Consensus had expected the index to increase to 50.5 as various regional surveys found improvement in supplier deliveries and employment during the month. However, the production and new orders contracted sharply. This could not offset by the modest increase in supplier deliveries and employment.

"On balance, the November ISM results suggest that the tentative stabilization in some manufacturing indicators over the past two months was indeed temporary, and the US manufacturing sector likely faces another leg down", says Barclays in a research note.