In October, the United States recorded a decrease in the level of manufacturing activity to a reading that is a 15-month low.
Also, last month, factories in the US faced such a circumstance as the rise in input prices.
The Institute for Supply Management (ISM) last Friday, November 1, said that its manufacturing Purchasing Managers’ Index (PMI) last month was fixed at 46.5. It is worth noting that in September the corresponding figure was 47.2. The October result is also the lowest since July 2023.
A PMI reading below 50 is evidence of the contraction in the manufacturing sector. It’s worth noting that currently, the share of this sector in the structure of the economic system of the United States is 10.3%.
As noted by the media, the decline in the PMI could potentially reflect strikes by workers at planemaker Boeing. Against the background of the mentioned process, this company was forced to halt the production of its best-selling aircraft models, including the 737 MAX, 767, and 777.
The labor strife was the reason for the downturn in industrial production in the United States in September.
It is worth noting that October was the seventh month in a row when the PMI was below the 50 threshold. At the same time, a reading above 42.5 is evidence of the growth of the economy as a whole.
In the third quarter of 2024 in the United States, spending on goods increased at the fastest pace in about the last year and a half. There is also a possibility that the corresponding indicator will show even greater growth, given that the Federal Reserve has started cutting interest rates.
