The manufacturing index, also known as the purchasing managers index (PMI), fall to 48.6 in November after registering 50.1 in October, Xinhua cited the Institute for Supply Management (ISM) as saying on Tuesday.
A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction.
The ISM’s new-orders index and the production index decreased while the employment index rose.
The dismal data shows that a strong US dollar and a weak global economy continue constraining factory activities.
Of the 18 manufacturing industries, only five reported growth which included non-metallic mineral products, food and tobacco.
A business survey conducted by the institute showed continued concerns about less demand from China and European markets were affecting the US business. (IANS)