U.S. manufacturing activity weakened further in October, with ISM Manufacturing PMI falling to 48.7 from 49.1, missing expectations of 49.4. The index signaled contraction for the eighth straight month as demand and output remained under pressure.
New orders improved slightly from 48.9 to 49.4 but stayed below the 50 threshold. Production dropped sharply from 51.0 to 48.2 — a clear sign that momentum across the industrial sector remains soft.
The employment component edged up to 46.0 from 45.3 but continued to signal job losses for a ninth consecutive month. Meanwhile, price pressures eased, with the prices-paid index falling from 61.9 to 58.0, suggesting that input costs are stabilizing even as demand remains sluggish.
According to ISM, the latest PMI reading corresponds to an annualized GDP growth rate of about 1.8%.
