New York City business activity contracted at its fastest pace in a year in October as the current business conditions index fell to 45.9 from 52.0 in September, the Institute for Supply Management-New York's Report on Business index, released Tuesday, indicated.

A reading above 50.0 indicates expansion.

The report's six-month outlook index gained to 57.7 from 56.4. The NY-BCI decreased to 559.9 from 561.9.

The prices paid composite index rose to 60.4 from 58.8, the quantity of purchases composite index gained to 52.2 from 48.4, employment fell to 47.8 from 52.8, the current month's revenues index slipped to 50.0 from 55.0, and the expected level of revenues slumped to 50.0 from 62.5.

A third of businesses surveyed reported no impediments, while "working capital shortage" and "skilled labor shortage" were the next two most popular answers, although both were cited by fewer businesses than in the prior survey.

The data were collected before Hurricane Sandy hit the region.

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