Forex News

USA: In October, the pace of expansion of the manufacturing sector declined more than expectations

According to a report by the Institute for Supply Management (ISM), published on Thursday, in October the growth of the manufacturing sector in the United States slowed more sharply than expected.

The business index in the sector decreased from 59.8 points in September to 57, 7 points in October, although the figure above 50 still indicates the expansion of the industry. Analysts had expected the index to weaken to the level of 59.0 points.

The value of the index in October was the lowest since April, when it reached 57.3 points.

“Consumption has decreased, and production and employment continued to grow, but at a lower rate compared with September, "said ISM representative Timothy Fiore.

" Difficulties with personnel and logistics still affect production, but now they are easier to keep under control, "he added.

The fall of the base index is below the predicted level followed by a decline and The index of new orders from 61.8 points in September to 57.4 in October and the production index from 63.9 points to 59.9.

The employment index also dropped from 58.8 points in September to 56.8 point in October, indicating a slowdown in employment in the manufacturing industry.

Meanwhile, the report reflects a sharp rise in the price index from 66.9 points in September to 71.6 points in October, which indicates a significant acceleration in growth rates Inflation in the industry.

A separate ISM report is expected next Monday about activity in the service sector in October.