• 12 hours Fighting For Survival In The Streaming War
  • 1 day Want A Job? Forget About A Bachelor’s Degree
  • 2 days Another Major Car Maker Is Backing Hydrogen
  • 2 days Are Americans Finally Sold On Soccer?
  • 3 days Is The Tech Bubble About To Burst?
  • 3 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 4 days What Web Traffic Trends Can Tell Us About The World
  • 4 days Miners Face Greater Headwinds
  • 4 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 6 days Goldman Slashes Oil Price Forecast By $10
  • 7 days Tesla Raises $2 Billion In Share Selloff
  • 7 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 8 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
  • 8 days How Hydrogen Could Become The Fuel Of The Future
  • 8 days Millennials Can’t Retire, But They’ll Still Have To Help Their Parents
  • 9 days This Gold Miner Just Increased Its Dividends By 40%
  • 9 days Airbnb IPO Under Threat As China's Economy Drags
  • 9 days The Infamous Equifax Hack Just Became A National Security Issue
  • 10 days BHP Takes The Crown As World’s Top Copper Miner
  • 10 days Tesla Reopens Chinese Factory After Coronavirus Scare
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Manufacturing ISM Flirts With Contraction Third Month, Employment Shifts to Contraction

Economists who looked at last month's barely above contraction report and predicted the same results this month were nearly spot on.

Last month the Manufacturing ISM was 50.2, this month the Bloomberg Consensus was 50.0, and the report came in at 50.1.

For a third straight month, the ISM is skirting near contraction, at 50.1 in October vs 50.2 and 51.1 in the prior two months.

New orders are showing some life, up nearly 2 points to a 52.9 reading that is safely above breakeven 50. Production is also at 52.9. But other readings are not as a favorable. Backlog orders remain in deep contraction at 42.5 while employment, for the first time in six months, is also in contraction, down nearly 3 points to 47.6. Exports have been the difference this year for the factory sector and new export orders in this report, at 47.5, remain below 50 for the fifth straight month. Prices, at 39.0, extended their long run of contraction.


ISM October 2012-Present

ISM MAnufacturing Index

That was the lowest reading since May of 2013. Let's investigate all the details of today's report straight from the Institute for Supply Management Manufacturing ISM® Report On Business® released this morning.

Institute for Supply Management Manufacturing ISM Report On Business


Key Points

  • Backlog of orders are in contraction
  • Growth in new orders barely positive
  • Exports contracting for the fifth month
  • Prices have plunged

There's nothing in the ISM report to make the Fed want to hike, but the Fed will do what they want.

For an interesting alternative to today's ISM numbers please see Gardner Business Index Shows Small to Medium Sized Businesses Struggling Most.

 

Back to homepage

Leave a comment

Leave a comment