INSTANT VIEW: Manufacturing tumbled in November

NEW YORK (Reuters) - Factory activity fell in November to its weakest since 1982, according to an industry report released on Monday.

Construction spending fell a steeper-than-expected 1.2 percent in October after the prior month was revised to unchanged, a Commerce Department report showed on Monday.

KEY POINTS: * The Institute for Supply Management said its index of national factory activity fell to 36.2 in November from 38.9 in October, below economists' median forecast for a reading of 37.0. * A reading below 50 indicates contraction in the sector.

COMMENTS:

KEITH HEMBRE, CHIEF ECONOMIST, FAF ADVISORS, MINNEAPOLIS

ISM: "Price paid drop is not a surprise given the huge drop in commodity prices. Employment is still very weak. New orders have fallen off the cliff in the past couple of months.

"The state of manufacturing is contracting very sharply over the past three months. It's a plunge in demand globally. It's a sharp contraction in credit availability and demand for consumer durables."

CONSTRUCTION SPENDING: "Residential construction continues to plunge because housing continues to deflate. This is going to be a continued drag in GDP. We are looking for a negative trajectory going well into next year."

ANTHONY CONROY, HEAD TRADER, BNY CONVERGEX, NEW YORK:

"The numbers are I think a little bit light. I think we're starting to see some profit taking after the biggest weekly gain in 30 years. We have a tremendous amount of economic numbers this week, I think everyone is waiting until Friday for the employment number. We'll see volatility until then.

"I think this number is just one of many that investors will be watching today. Bernanke is also speaking, and that'll move the market, too."

PIERRE ELLIS, SENIOR ECONOMIST, DECISION ECONOMICS, NEW YORK:

"This is another serious blow to manufacturing. Declines in demand are outpacing the declines in production. Employment is unnaturally stable. This emphasizes the general rapid slowdown in inflation. The economy is falling more sharply and to a greater depth than earlier perceived and the effect on prices is more immediate. Odds are that the Q3 and revised Q2 productivity and cost numbers due on Wednesday will reinforce that picture. Price adjustment is what will ultimately bring the economy back but the immediate pain is severe."

GREG SALVAGGIO, VICE PRESIDENT OF CAPITAL MARKETS, TEMPUS

CONSULTING, WASHINGTON, D.C.:

"Continued weakness in the U.S. manufacturing sector and it is also interesting to note inflation is all but non-existent given the prices paid component dropping to 25.5. On this basis the U.S. economy continues to remain weak going forward and we will anticipate some dollar weakness as traders refocus on weak U.S. economic fundamentals."