US: ISM Manufacturing PMI declines to 46.7 in October vs. 49 expected


Share:
  • ISM Manufacturing PMI worsened unexpectedly to 46.7 in October.
  • US Dollar Index trims gains, retreats from 107.00.

The economic activity in the US manufacturing contracted in October, with the ISM Manufacturing PMI falling to 46.7 from 49 in September. This reading came in worse than the market expectation of 49.

Key takeaways from the report:

The Manufacturing PMI registered 46.7 percent in October, 2.3 percentage points lower than the 49 percent recorded in September.

The New Orders Index remained in contraction territory at 45.5 percent, 3.7 percentage points lower than the figure of 49.2 percent recorded in September. 

The Production Index reading of 50.4 percent is a 2.1-percentage point decrease compared to September’s figure of 52.5 percent. 

The Prices Index registered 45.1 percent, up 1.3 percentage points compared to the reading of 43.8 percent in September. 

The Backlog of Orders Index registered 42.2 percent, 0.2 percentage point lower than the September reading of 42.4 percent. 

The Employment Index registered 46.8 percent, down 4.4 percentage points from the 51.2 percent reported in September.

Market reaction

The US Dollar Index pulled back modestly after the ISM and the JOLTS report, retreating from 107.00 to 106.85. It was still up for the day. Now attention is set on the Federal Reserve’s decision. 
 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

AUD/USD bears challenge 0.6550 amid geopolitical risks, ahead of a Big week

AUD/USD bears challenge 0.6550 amid geopolitical risks, ahead of a Big week

AUD/USD is trading near 0.6550, under heavy selling pressure at the start of a Big week on Monday. Markets digest recent Middle East geopolitical risks and the Chinese deflationary trend, which weigh on risk sentiment and the Aussie Dollar while the US Dollar consolidates the previous rebound. 

AUD/USD News

USD/JPY: Japanese Yen keeps falling, as US Dollar firms up on risk aversion

USD/JPY: Japanese Yen keeps falling, as US Dollar firms up on risk aversion

The Japanese Yen is accelerating its decline against the US Dollar. Reduced bets for an imminent shift in the BoJ’s policy shift undermine the JPY. The US Dollar benefits from upbeat US NFP data and broad risk aversion. The focus shifts to the US CPI data and the Fed decision this week.

USD/JPY News

Gold sellers set to extend control, as the Big week kicks off

Gold sellers set to extend control, as the Big week kicks off

Gold price is testing a 10-day low of $1,995 set on Friday, seemingly vulnerable early Monday, as the Big Central Banks week kicks off. The United States Dollar is clinging to its recovery gains amid a cautious market environment and steady US Treasury bond yields.

Gold News

Bitcoin price crashes 7.7% in Asian session, sets off $200 million in liquidations

Bitcoin price crashes 7.7% in Asian session, sets off $200 million in liquidations

Bitcoin (BTC) price dropped 7.74% in the last hour, briefly tagging the $40,400 level. According to data from CoinGlass, this move caused nearly $200 million worth of positions to be liquidated. 

Read more

Central stage: The big three central banks in focus

Central stage: The big three central banks in focus

As we approach the end of the year, this week holds particular significance for macro observers. The three major central banks, often referred to as the "Big 3" – the Federal Reserve, the European Central Bank (ECB), and the Bank of England (BoE) – are all scheduled to convene.

Read more

Forex MAJORS

Cryptocurrencies

Signatures