ISM manufacturing report below expectations in October
Tuesday, November 01, 2011
The Institute for Supply Management announced on November 1 that its manufacturing index fell to 50.8 in October from 51.6 in September. Since a number above 50 generally signals expansion, the sector is still growing, albeit more slowly than before.
The reading was below the median forecast of 52 provided by economists participating in a Bloomberg News survey. The 85 market experts that provided their input gave estimates ranging between 50.5 and 55. October's index was also below the prediction of economists polled by MarketWatch, who forecast a reading of 52.1.
Other evidence of declining worldwide factory activity includes a gauge of U.K. manufacturing that sank to its lowest point in 28 months and a Chinese factory index that fell in October, according to Bloomberg.
"Businesses are behaving as though the economic outlook is not especially promising," Richard DeKaser, deputy chief economist at The Parthenon Group in Boston, told the media outlet. "Generally, conservative inventory behavior positions firms for a weak outlook. If it doesn’t materialize, then there could be urgent need for restocking."
Investors participating in online stock trading might benefit from reading key reports on manufacturing activity such as this one.
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