The Institute for Supply Management's Purchasing Managers Index (PMI) decreased 0.8 percent in October from September to 50.8 percent. Nonetheless, any reading over 50 indicates growth, and so economic activity in the manufacturing sector expanded in October for the 27th consecutive month and the overall economy grew for the 29th consecutive month.
The majority of the indices measured by the ISM registered declines in October, including production (down 1.1 percent); employment (down 0.3 percent); inventories (down 5.3 percent); and prices (down 15 percent). Primary metals and fabricated metal products were among the manufacturing industries that reported lower prices in October. The prices index was at 41 percent in October, reflecting the first drop below 50 since May 2009.
A bright spot in October came from the new orders index, which increased 2.8 percent from September to 52.4 percent after three months of contraction.