Manufacturing contracted in October, as the PMI registered 48.3%, an increase of 0.5% from the September reading of 47.8%. A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
“The PMI contracted for the third straight month, but at slower levels compared to September. This marks seven straight months of softening or contraction in manufacturing. All but one (new export orders) of the PMI sub-indexes registered at levels associated with contraction. Two of the six big industries expanded, and four contracted,” says Timothy R. Fiore, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee.