Manufacturing in Utah, regionally and across the U.S. shrank in November as worries about automatic tax increases that could kick in next year cut demand for factory orders and manufacturing jobs.
The Institute for Supply Management said Monday that its national index of manufacturing conditions fell to a reading of 49.5, down from 51.7 in October, and the lowest level since July 2009 — the first month after the Great Recession ended.
Utah’s manufacturing was the strongest of the three states. Even so, its index dropped to 57.3 in November from October’s reading of 60.1, economist Ernie Goss said.
Any reading above 50 signals expansion, while readings below 50 indicate contraction; In Utah, a reading of 57 or higher is strong, Goss said.
The Utah index has fallen for two months from a 2012 high of 61.7, despite stronger orders for durable goods, especially computer and electronic components and metals.
Worries about the fiscal cliff have led many companies to pull back on year-end purchases of machinery and equipment, which signal investment plans. Salt Lake Tribune
