ISM Manufacturing Index Plunges to 26-Year Low
An index of U.S. manufacturing fell to a 26-year low in October, the Institute for Supply Management said Monday.
ISM’s monthly factory services index fell to a reading of 38.9, from 43.5 in September, ISM said. Figures of more than 50 indicate expansion, while below that shows contraction.
The October figure was the lowest since September 1982. Economists had forecast a drop to 41, Bloomberg reported.
The survey’s production index fell 6.7 points to a 34.1 reading, while new orders fell 6.6, to 32.2. The price index plunged 16.5 points to a 37 reading.
“Manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices,” said Norbert Ore, chair of ISM’s manufacturing committee.
The factory index measures manufacturing components of the economy. The trucking industry relies on factory orders and shipments for much of its business.
