Association News

Manufacturing Contracts Again in October

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Economic activity in the manufacturing sector contracted in October for the third straight month, reports the Institute for Supply Management in its latest Manufacturing Report on Business. The PMI for October was 48.3 percent, an increase of 0.5 percentage points from September.

Among other indices, New Orders registered 49.1 percent, an increase of 1.8 percentage points; the Production Index dropped 1.1 percentage points to 46.2 percent; and the Employment Index climbed 1.4 percentage points to 47.7 percent.

Of the 18 manufacturing industries, five reported growth in October, though none closely tied to the metals industry. Among the 12 industries reporting contraction in the month included primary metals, fabricated metal products, transportation equipment, machinery, appliances and components, and miscellaneous manufacturing.

The PMI for October corresponds to a 1.6 percent increase in real GDP on an annualized basis, reports Tim Fiore, chairman of the ISM’s Manufacturing Business Survey Committee.