U.S. business activity shrank in October

Source: Dukascopy Bank SA
"The manufacturing sector is struggling"
- Scott Brown, chief economist at Raymond James & Associates Inc.


Business activity in the U.S. Midwest shrank for the second consecutive month in October, a sign the recovery in manufacturing sector is losing steam. The Institute for Supply Management-Chicago said its gauge of manufacturing activity improved to 49.9 from 49.7 in September, while still remains in negative zone. A reading of 50 is the dividing line between expansion of the sector and its contraction. At the same time, the forward-looking new orders index jumped to 50.6, up from 47.4.

"The manufacturing sector is struggling," said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, who forecast a reading of 49.4. "You've got global weakness which is hurting exports. You've got uncertainty with the fiscal cliff, which may keep people cautious."

"There's just a great deal of uncertainty and there's not a lot of demand," said Stephen Roell, president and chief executive officer of Johnson Controls Inc., an automotive and building supplier in Milwaukee, Wisconsin. "I mean, there's not a lot of growth in the underlying economy."

The Standard & Poor's 500 added 0.02 per cent to 1,412.16. The Dow Jones Industrial Average fell 0.08 per cent to 13,096.46. The Nasdaq Composite decreased 0.36 per cent to 2,977.23.


© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.