• Main
  • Analytics
  • Market News
  • U.S. manufacturing activity contracts further in October - ISM
Economic news
01.11.2024

U.S. manufacturing activity contracts further in October - ISM

A report from the Institute for Supply Management (ISM) revealed on Friday the U.S. manufacturing sector’s activity shrank again in October at a quicker pace than in September.

The ISM's index of manufacturing activity - the manufacturing PMI - checked in at 46.5 per cent in October, down from an unrevised September reading of 47.2 per cent (from 48.7). The latest reading pointed to a contraction in the U.S. factory sector for the seventh straight month and represented the lowest figure since July 2023 (46.4).

Economists had expected the indicator to rise to 47.6 per cent.

According to the report, the New Orders Index increased 1.0 percentage point to 47.1 per cent last month but was still in contraction territory for the seventh consecutive month. In addition, the Employment Index rose 0.5 percentage point to 44.4 per cent but remained in contraction territory, indicating that employment reduced in October for the fifth month in a row. Meanwhile, the Production Index plunged 3.6 percentage points to 46.2 per cent, staying in contraction territory for the fifth straight month. The Supplier The Inventories Index decreased 1.3 percentage points to 42.6 per cent, suggesting manufacturing inventories fell slightly deeper in contraction territory after a one-month expansion in August.

Deliveries Index slipped 0.2 percentage point to 52.0 per cent, marking the fourth consecutive month of slower deliveries. On the price front, the Prices Index soared 6.5 percentage points to 54.8 per cent, indicating that raw materials prices increased in October after decreasing the month before. 

See also