Instant view: Factory growth expands again in Nov

NEW YORK (BestGrowthStock) – U.S. manufacturing activity expanded for its 16th consecutive month in November, an industry survey said on Wednesday.

CONSTRUCTION SPENDING: U.S. construction spending posted a surprisingly robust 0.7 percent gain in October, matching the prior month’s rise as investment.

KEY POINTS: * The Institute for Supply Management said its national index of manufacturing activity slipped to 56.6 in November from 56.9 in October. A reading above 50 indicates growth in the sector.

COMMENTS:

STEVEN RICCHIUTO, US ECONOMIST, MIZUHO SECURITIES, NEW YORK

“The ISM numbers did basically what people thought it would do, it moved down a little bit, still continued to show 16 months of expansion. You’ve got a little weakness in the new orders numbers, and you’ve got a little weakness in the employment numbers. I don’t think anyone’s going to change their payroll employment estimates on the back of this.”

JOSEPH GRECO, MANAGING DIRECTOR AT MERIDIAN EQUITY PARTNERS, NEW YORK:

“Right in line with what we were anticipating. There was no reason to believe that things accelerated or stalled out this month, so this won’t be a motivator for trading. The employment number gave a much bigger jolt to traders. This was so close to home that it isn’t doing anything. But the market is clearly in a rallying mood today, and you can’t ignore that. But I think ISM won’t move much until late in the first quarter, when people start ramping up for the warmer months and people start buying with their tax rebates.”

MARKET REACTION: STOCKS: US stocks held gains. BONDS: Treasury prices recouped some losses. FOREX: The dollar slipped against the euro.

Instant view: Factory growth expands again in Nov