The US manufacturing sector’s market activity has registered a 50.2 per cent rate for the month of October, recording a 0.7-point slip from September’s results.
The Institute for Supply Management’s Manufacturing Report on Business registered a rating of 50.2 per cent for the month of October, marking a 0.7 per cent slip compared to the previous month.
Despite indicating expansion in the overall economy for the 29th month in a row, the Manufacturing PMI figure marks the market activity’s slowest pace since the contraction nearly two and a half years ago, according to ISM’s report.
The Manufacturing PMI registered 43.5 per cent in May 2020.
The New Orders index has remained in the contraction territory for October, standing 49.2 per cent, which is 2.1 points higher than September’s 47.1 per cent result.
Readings for the production index saw a 1.7-point increase, standing at 52.3 per cent, while the prices index is down by a whopping 5.1 per cent compared to September’s, standing at 46.6 per cent.
Meanwhile, the unemployment index saw stability in October at 50 points, a 1.3 per cent climb from September’s recorded figure of 48.7 points.
The New Export Orders index slipped by 1.3 to 46.5 per cent and imports remained in expansion territory at 50.8 per cent, despite a significant 1.8-per cent decline from September’s 52.6 per cent reading.
Timothy Fiore, ISM’s chairman for the Manufacturing Business Survey Committee, said three of the six manufacturing industries saw moderate-to-strong growth in October.
These sectors are namely Machinery; Petroleum & Coal Products; and Transportation Equipment.
“Like in September, mentions of large-scale layoffs were absent from panelists’ comments, indicating companies are confident of near-term demand. As a result, managing medium-term head counts and supply chain inventories remain primary goal,” Fiore said.
“With the decline in the Backlog of Orders Index, buyers and sellers will begin to shore up order books and order streams to reduce share loss in the medium-to-long term,” he added.
