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.