Manufacturing economic activity jumped in November, according to new data from the Institute of Supply Management (ISM). The ISM Manufacturing Purchasing Managers' Index (PMI) came in at 48.4, a month-over-month increase of 1.9 percentage points, but the index's eighth consecutive decline.

ISM Manufacturing Business Survey Committee chair Tim Fiore joins Seana Smith and Madison Mills on Catalysts to discuss the print and what it signals about the manufacturing sector.

Fiore says, "I think it's a little earlier than I would have thought, but it's on the same trajectory that we had projected at the end of last month. So, I've been saying that I don't think we're going to break 50 until the first quarter of next year. My last comment last month was probably February, [but] it could very well be January."

He explains, "The reason I'm saying that is that the new order level finally got back to expansion. We haven't seen that in about nine months. We're slowing our employment [and] our layoff activity. It appears that we're investing in manufacturing inventory in the month of November, which is very quick after the election. I think that's really a good sign."

On the other hand, Fiore notes, "The thing that's really negative here in the headline numbers is the fact that production was still at the 46.8 [mark]. I think, probably, in December, we'll see that get closer to 50 again, and if that kind of breaks the 50 number in January, then we're off and running."

Fiore adds, "The environment has been set up very well. We want a rate reduction cycle. We now have a Republican administration coming into power. They've been very clear about what they want to do. They want to incentivize businesses to expand. They want to bring jobs back to the US. We'll see how that goes. But overall, it's very positive from the business standpoint."

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This post was written by Naomi Buchanan.