US manufacturing production continues downward trend last month
Date
11/3/2024 7:21:27 AM
(MENAFN) manufacturing production in the United States continued its downward trajectory in October, although the decline occurred at its slowest rate in three months, as reported by S&P Global. The US Manufacturing Purchasing Managers' Index (PMI) was recorded at 48.5 for October, an improvement from September's figure of 47.3. Despite this slight increase, the index remains below the neutral mark of 50.0 for the fourth consecutive month, indicating that the manufacturing sector is still contracting.
The report highlighted some easing in the downturn within the manufacturing sector, suggesting that the pace of decline is slowing. Uncertainty surrounding the upcoming Presidential Election has been identified as a significant factor contributing to the continued fall in new orders. However, the decline in orders has been easing, and production cuts have been less severe, reflecting a potential stabilization in the manufacturing environment.
Despite these signs of moderation, manufacturers are still facing challenges, including continued reductions in employment and purchasing activity. Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that the ongoing downturn in manufacturing marks a disappointing start to the fourth quarter for the goods-producing sector. Although the rate of decline has lessened, the deterioration of order books remains a significant concern.
Williamson further pointed out that the accumulation of unsold inventory suggests that factories may need to implement additional production cuts in the coming months unless there is a revival in demand. This ongoing trend underscores the fragility of the manufacturing sector, as it navigates a complex economic landscape marked by uncertainties and shifting consumer needs.
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