US: ISM Manufacturing PMI declines to 46.7 in October vs. 49 expected
|- ISM Manufacturing PMI worsened unexpectedly to 46.7 in October.
- US Dollar Index trims gains, retreats from 107.00.
The economic activity in the US manufacturing contracted in October, with the ISM Manufacturing PMI falling to 46.7 from 49 in September. This reading came in worse than the market expectation of 49.
Key takeaways from the report:
The Manufacturing PMI registered 46.7 percent in October, 2.3 percentage points lower than the 49 percent recorded in September.
The New Orders Index remained in contraction territory at 45.5 percent, 3.7 percentage points lower than the figure of 49.2 percent recorded in September.
The Production Index reading of 50.4 percent is a 2.1-percentage point decrease compared to September’s figure of 52.5 percent.
The Prices Index registered 45.1 percent, up 1.3 percentage points compared to the reading of 43.8 percent in September.
The Backlog of Orders Index registered 42.2 percent, 0.2 percentage point lower than the September reading of 42.4 percent.
The Employment Index registered 46.8 percent, down 4.4 percentage points from the 51.2 percent reported in September.
Market reaction
The US Dollar Index pulled back modestly after the ISM and the JOLTS report, retreating from 107.00 to 106.85. It was still up for the day. Now attention is set on the Federal Reserve’s decision.
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