Manufacturing purchasing managers reported production rose sharply in November after two months of no change but they are still nervous about the outlook for further gains.

A new report released Monday from the Institute of Supply Management shows their Production Index climbed to 54.6 in November, up from 49.3 in October. However, their index of total manufacturing barely climbed, from 48.5 in October to 49.2 in November.
A reading below 50 indicates contraction, while a reading above 50 indicates expansion.
Newport Communications Senior Economist Jim Haughey says the decline in the total manufacturing index is due to small one-point declines in ISM's index of orders and employment.
"Activity is strongest at consumer goods factories and this should get a boost from the strong start reported for the Christmas shopping season," he said. "Capital goods manufacturers are still lagging, waiting for capacity utilization to move up from about 75-76% to near 80%. The 1% decline of the dollar in November should provide a small boost this winter, especially in Europe, our major capital goods export market. The dollar had gained a 5% price advantage in Europe since June."