US: ISM Macturing PMI recovered 48.3 in October, missed market estimate of 48.9
|- Manufacturing activity contracted at a softer pace than it did in September.
- The Greenback came under bearish pressure on the dismal data.
The Institue for Supply Management (ISM) on Friday reported that the economic activity in the manufacturing sector in the US continued to contract in October with the Purchasing Managers' Index (PMI) coming in at 48.3. Although this reading was better than September's 47.8, it was still below the market expectation of 48.9.
The US Dollar Index turned south on the disappointing data and was last down 0.1% on the day at 97.25.
Assessing the data, "Comments from the panel reflect an improvement from the prior month, but sentiment remains more cautious than optimistic. October was the third consecutive month of PMI contraction, at a slower rate compared to September," noted Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. "Demand contracted, with the New Orders Index contracting marginally, the Customers’ Inventories Index moving into ‘about right’ territory and the Backlog of Orders Index contracting for the sixth straight month (and at a faster rate). The New Export Orders Index surged into expansion territory, likely contributing to the slowing contraction of the New Orders Index."
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