• 770 days Will The ECB Continue To Hike Rates?
  • 771 days Forbes: Aramco Remains Largest Company In The Middle East
  • 772 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,172 days Could Crypto Overtake Traditional Investment?
  • 1,177 days Americans Still Quitting Jobs At Record Pace
  • 1,179 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,182 days Is The Dollar Too Strong?
  • 1,182 days Big Tech Disappoints Investors on Earnings Calls
  • 1,183 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,185 days China Is Quietly Trying To Distance Itself From Russia
  • 1,185 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,189 days Crypto Investors Won Big In 2021
  • 1,189 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,190 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,192 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,193 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,196 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,197 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,197 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,199 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  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