- Lindsey Piegza, chief economist at Stifel Nicolaus & Co
Activity in the US manufacturing sector rose at its slowest pace in more than two years in October, underscoring factories struggle with a sluggish global economy and strong US Dollar. According to the Institute for Supply Management, manufacturing PMI dropped to 50.1 last month, down from 50.2 in September, falling for a fourth consecutive months. The strong Greenback has hurt exports and caused job cuts at plants across the country. The number of manufacturing jobs decreased by 8% in October compared with a month earlier, reaching the lowest level since August 2009. Also, manufacturers reported that prices of raw materials declined for the 12th successive month. However, the index for new orders climbed to 52.9, up from 50.1, adding to hopes that the slowdown may end in the coming months. Overall manufacturing activity has grown for 34 months in a row, but the pace of growth has deteriorated for four straight months.
In contrast, Markit's final survey showed manufacturing activity across the US rose in October and hit the highest level in seven months. Markit's manufacturing PMI came in at 54.1 in the reported month, compared with 53.1 in September.
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