Economy, Manufacturing Still Expanding, ISM Says

The overall economy grew for the 29th straight time, while the manufacturing sector expanded for the 27th time, the Institute for Supply Management reported Tuesday.

According to the institute’s monthly report on business, the ISM index slipped to 50.8 in October from 51.6 in September.

Economists polled by Thomson Reuters predicted the index would climb to 52.0.

An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.

The closely watched prices paid index slumped to 41.0 from 56.0. The employment index was at 53.5, off from 53.8 the previous month.

The production index decreased to 50.1 from 51.2, the new orders index grew to 52.4 from 49.6, the supplier deliveries index dipped to 51.3 from 51.4, the export orders index decreased to 50.0 from 53.5, and the imports index slid to 49.5 from 54.5.

The inventories index fell to 46.7 from 52.0, the customers’ inventories index dropped to 43.5 from 49.0, and backlog of orders slumped to 41.5 from 41.5.

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