Economic activity within US manufacturing sector contracts in October
Date
11/3/2024 7:21:04 AM
(MENAFN) Economic activity within the US manufacturing sector showed continued signs of contraction in October, marking the seventh consecutive month of decline, as indicated by the latest report from the Institute for supply Management (ISM). The ISM manufacturing purchasing managers' index (PMI) registered at 46.5 percent for October, a decrease of 0.7 percentage points from the previous month's figure of 47.2 percent. This reading reflects a concerning trend, as any PMI figure below 50 indicates a contraction in the manufacturing sector, while a figure above that threshold signifies growth.
Market analysts had anticipated a slightly higher PMI, projecting it to come in at 47.6 percent based on responses from purchasing and supply executives in over 400 industrial firms. The latest results are particularly notable as they reflect the 23rd contraction in the past 24 months, indicating a prolonged period of stagnation or decline within the sector. Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, remarked on the ongoing struggles faced by the manufacturing industry, highlighting that demand remains weak and output continues to decline.
Fiore further emphasized that the pace of contraction in manufacturing activity has accelerated compared to previous months, signaling deeper challenges ahead. Despite these difficulties, he noted that input costs remained relatively stable, suggesting that suppliers have been accommodating in their pricing strategies, which may provide some relief amid declining output levels. Nonetheless, the persistent weakness in demand and production highlights the challenges faced by manufacturers in navigating the current economic landscape.
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