US manufacturing PMI falls in October

By Ovunc Kutlu

ANKARA (AA) - Manufacturing Purchasing Managers Index (PMI) in the US decreased in October, coming below the market expectation, according to London-based global data provider IHS Markit on Monday.

The index, which measures the activity level of purchasing managers in the manufacturing sector, fell to 58.4 in October, down 2.3 points from 60.7 in September. The market expectation for the index was to come at 59.2 in October.

While a reading above 50 indicates expansion in the sector, a figure below 50 shows contraction.

The data provider pointed to supply chain constraints, noting in its report "A lack of input availability and transportation delays led to a severe deterioration in vendor performance, with input costs rising markedly."

"Companies continued to highlight strong demand conditions, but some noted that raw material shortages were hampering demand from clients as stocks of inputs had already been built or delivery times were too extensive. The pace of new order growth was the slowest for ten months," it added.

Production growth in October slowed to the softest since July 2020, it said, adding "raw material and labor shortages were commonly cited as hampering the upturn."