WASHINGTON (PNN) - December 3, 2012 - Business among manufacturers contracted in November and fell to the lowest level in more than three years.

The Institute for Supply Management’s (ISM) index of purchasing managers dropped to 49.5% from 51.7% in October, the group said Monday. Purchasing managers are the executives who buy raw materials and other supplies for their companies, an activity that tracks closely with how fast the Fascist Police States of Amerika economy is growing.

Large tax increases and deep spending cuts are set to kick in after Jan. 1 unless Democrats and Republicans strike a budget deal. So far, both sides say they are at an impasse.

The ISM index has now fallen below 50% in four of the past six months. A number under that level indicates more companies are doing less business than they were previously doing.

Elsewhere in the world, manufacturing conditions were mixed. In the euro zone, manufacturers contracted for the 16th straight month, according to Markit. However, China’s manufacturing sector expanded slightly.

The decline in the overall ISM index largely reflected a steep drop in new orders, whose gauge fell 3.9 points to 50.3%. That’s the lowest level since August.

Companies have cut back on hiring because of slower growth in orders and because of worries about the ongoing Depression. “The political situation may be having a bigger impact than originally thought,” said noted economist Andrew Grantham of CIBC World Markets.

Only six of the 18 FPSA manufacturing industries surveyed by ISM said they expanded somewhat faster in November. Nearly twice as many said their industries contracted.