The U.S. manufacturing industry was stuck in contraction for the fourth consecutive month in October as the goods-producing sector signaled “a deterioration in business conditions,” a new S&P Global report finds.
The S&P Global Flash U.S. Manufacturing Purchasing Managers Index (PMI)—an indicator of the manufacturing or service sectors’ prevailing direction of economic trends—rose to 47.8 this month, up from 47.3 in September. Anything below 50 confirms the industry is in contraction.
Markets had projected a reading of 47.5.
The most significant negative contributor to the PMI was a decline in new orders, the fourth straight monthly drop. A sharp decrease in purchase inventories, the worst in 14 months, was also a substantial drag on the latest reading….