Global manufacturing gauges collapse in November

By Ruth Mantell, MarketWatch

U.S. ISM index falls to 36.2%, lowest in nearly 27 years

Manufacturing gauges in three major world economies showed sharp contractions in November, according to new data showing fresh recessionary signals as the financial crisis takes a global toll.

In the United States, manufacturing activity contracted for the fourth consecutive month, as a gauge of price pressures hit an all-time low, according to a survey of corporate purchasing managers released Monday by the Institute for Supply Management. The November ISM index decreased to 36.2%, the lowest reading since May 1982. Read the full report.

The U.S. result for November “promises continued recession,” wrote Ian Shepherdson, chief U.S. economist with High Frequency Economics, in a research note.

“Manufacturing is in freefall, with output collapsing,” Shepherdson wrote. “We see no prospect for near-term improvement.”

Elsewhere, the purchasing managers’ indexes for the euro zone and for the U.K. fell to record lows. See full story. And in China, a gauge of the country’s manufacturing activity in November showed the sharpest contraction in the survey’s history, which began in 2004. Read more….