More Contraction for Manufacturing with PMI at 48.3

The Institute for Supply Management’s Manufacturing PMI remained in contraction in October with a reading of 48.3, the third month of contraction, indicating continued softening in the manufacturing sector. The October reading was an increase of 0.5 percentage points from September. Nine of the ten components of the index registered below the neutral point of 50 in October, with only new export orders showing stronger growth.

“Comments from the panel reflect an improvement from the prior month, but sentiment remains more cautious than optimistic,” said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee. “Global trade remains the most significant cross-industry issue.”