The National Association of Purchasing Management reported that the manufacturing industry declined in October for the third consecutive month. The October PMI fell to 48.3%, below the consensus expectation of 49.5%, and the lowest level since December of 1998. However, October marked the overall economy's 114th consecutive month of growth.
According to Norbert J. Ore, C.P.M., chair of the NAPM's Manufacturing Business Survey committee, "The manufacturing sector failed to grow in October for the third consecutive month. The general trend of softness in manufacturing was accentuated by the fall of the Production Index to below the 50 mark in October after showing modest growth in September. New Orders continue to be a concern as that Index has failed to grow since July. New Export Orders fell below 50, a rare occurrence, indicating concerns for a global slowdown. Bright spots were October’s Prices and Imports as they both moved in positive directions."
NAPM's Production Index decreased 1.6% to 48.3 in October. The New Order Index declined 1.1% to 48.0 while the Backlog of Orders Index registered 41, indicating small backlogs for the sixth consecutive month.
Among other sub-indexes, prices paid decreased by 1.6% in October to 56.5 from September's 58.1, supplier deliveries rose to 51.4 indicating faster deliveries in October, and employment decreased 3.0% to 47.9, down from 50.9 in September.
Series October September PMI 48.3 49.9 Production 48.4 52.1 New Orders 48.0 49.1 Backlog of Orders 41.0 47.0 Supplier Deliveries 51.4 49.3 Inventories 45.4 45.9 Employment 47.9 50.9 Prices 56.5 58.1 New Export Orders 48.3 50.3 Imports 51.8 50.5
The next NAPM Report on Business will be released on December 1, 2000.