LONDON, Nov 3 (Reuters) - Global manufacturing activity contracted for the fifth consecutive month in October, falling to a record low, but easing price pressures will provide a little cheer, a survey showed on Monday.
The JP Morgan Global Manufacturing PMI, compiled with research and supply management organisations, fell to 41.0 in October, its lowest since the survey began in January 1998, from 44.7 in September.
The release marks the fifth month in a row the index was below the 50.0 mark dividing growth from contraction.
"October manufacturing PMI data reinforce the stark retrenchment that the sector is currently facing, with production, total new business and new export orders all falling at record rates," said David Hensley, a director at JP Morgan. The only bright spot in the report showed that prices fell for the first time since August 2003, mainly focused on the U.S. and China, as inflationary pressures retreated sharply on the back of falling oil and raw material prices. Data released earlier on Monday showed manufacturing in the euro zone fell to levels not seen in the 11-year history of the survey while the UK saw a slight uptick in activity, although the index remained in contraction for the sixth month running.
News from the United States was also dire, with figures showing manufacturing activity slumped in October to a 26-year low as the financial crisis continued to ravage the world's largest economy. The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.
(Reporting by Jonathan Cable; editing by Stephen Nisbet)