ISM Manufacturing falls in October

The U.S. manufacturing sector contracted in October, Manufacturing PMI® registered 46.7%, 2.3 percentage points (pp) lower than the 49.0% recorded in September. Regarding the overall economy, this figure indicates that the economy dropped back into contraction after one month of weak expansion preceded by nine months of contraction and a 30-month period of expansion before that (a manufacturing PMI® above 48.7%, over a period of time, generally indicates an expansion of the overall economy).

The Employment Index registered 46.8%, down 4.4 pp from September’s reading of 51.2%.

The New Orders Index remained in contraction territory at 45.5%, 3.7 pp lower than the figure of 49.2% recorded in September.

The New Export Orders Index reading of 49.4% is 2 pp higher than September’s figure of 47.4%.

The Inventories Index decreased 2.5 pp to 43.3%; the September reading was 45.8%.

Read the ISM release.