U.S. manufacturing slowed in October as the gauge of new orders declined to a 16-month low and factories continued to struggle with delays in the deliveries of raw materials.
- The Institute for Supply Management(ISM) stated its index of national factory activity dropped a score of 60.8 last month from 61.1 in September.
- Any reading over 50 signals expansion in manufacturing that accounts for 12% of the overall U.S. economy.
- The world’s largest economy is struggling with shortages across industries as global supply chains remain stuffed. Supply problems helped to curb economic growth to its slowest rate in over a year in Q3.
- The ISM survey’s gauge of supplier deliveries improved to a reading of 75.6 the previous months from 73.4 in September. The gauge’s measure of prices paid by the manufacturers rose to 85.7 from 81.2 in September.
Factories hired additional workers, with the sub-index of employment rising to a reading of 50 from 50.2 in September, signaling an improvement in consumers’ perceptions of the labor market.
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Source: IHS Markit.