The overall economy grew for the seventy-seventh straight time, while the manufacturing sector expanded for the thirty-fourth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index decreased to 50.1 in October from 50.2 in September.
Economists polled by Thomson Reuters predicted the index would slip to 50.0.
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 prices paid index grew to 39.0 from 38.0. The employment index fell to 47.6 from 50.5.
The production index climbed to 52.9 from 51.8, the new orders index rose to 52.9 from 50.1; the supplier deliveries index inched up to 50.4 from 50.2; the export orders index increased to 47.5 from 46.5; and the imports index slid to 47.0 from 50.5.
The inventories index slid to 46.5 from 48.5; the customers' inventories index dropped to 51.0 from 54.5; and backlog of orders gained to 42.5 from 41.5.
Respondents' comments included:
- "Demand remains steady with three percent top line unit growth. [Dollar] ($) sales are flat due to currency and cost changes." (Paper Products)
- "Currency exchange is having a large impact on business results." (Chemical Products)
- "Energy market continues to struggle. Effects are beginning to bleed into other areas." (Computer & Electronic Products)
- "Business is improving. We still need young machinists to replace those retiring." (Fabricated Metal Products)
- "Business is picking-up in general." (Transportation Equipment)
- "Some level of slowing, but activity is acceptable." (Machinery)
- "Customer backlogs are increasing now that the perception[s] of raw material[s] pricing have bottomed out." (Plastics & Rubber Products)
- "Sales demand becoming more consistent. Beginning to see slightly more capital spending by key customers. Outlook more positive than negative." (Electrical Equipment, Appliances & Components)
- "Wood products market is sluggish with prices varying up/down depending on size and grade." (Wood Products)
- "So far bird flu has not been reintroduced as bird migration begins." (Food, Beverage & Tobacco Products)
