Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. ISM manufacturing PMI declines unexpectedly

Published 11/01/2011, 10:08 AM
EUR/USD
-

Investing.com – Manufacturing activity in the U.S. declined unexpectedly in October, industry data showed on Tuesday.

In a report, the Institute for Supply Management said its index of purchasing managers fell by 0.8 points to 50.8 in October, down from 51.6 in September.

Analysts had expected the ISM index of purchasing managers to ease up by 0.5 points to 52.1 in October.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

The report showed that the ISM index of manufacturing prices fell sharply in October, dropping by 15.0 points to 41.0 from 56.0 in September. Analysts had expected manufacturing prices to fall by 1.0 point to 55.0. The index fell below 50.0 for the first time since May 2009.

The New Orders Index increased 2.8 points from September to 52.4, indicating a return to growth after three months of contraction.

Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee said, “Comments from respondents are mixed, indicating positive relief from raw materials pricing and continuing strength in a few industries, but there is also more concern and caution about growth in this uncertain economy."

Following the release of the data, the U.S. dollar added to strong gains against the euro, with EUR/USD tumbling 1.55% to trade at 1.3642.

Meanwhile, U.S. equity markets extended losses following the report. The Dow Jones Industrial Average plunged 2.05%, the S&P 500 index sank 2.3%, while the Nasdaq Composite index dropped 1.1%.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.