Business
11:46, 02-Nov-2018
US manufacturing sector slows in October
Updated
11:30, 05-Nov-2018
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The US manufacturing sector slowed in October compared to the previous month, data released Thursday by the Institute for Supply Management (ISM) showed.
ISM's report said its index of national factory activity fell to a reading of 57.7 last month from 59.8 in September. A reading above 50 indicates growth in manufacturing, which accounts for about 12 percent of the US economy.
The ISM described demand as "moderately" strong, a downgrade from "robust" in the previous months. It also said consumption had "softened, with production and employment continuing to expand, but at lower levels compared to September."
The ISM's new orders sub-index fell to a reading of 57.4 last month, the lowest reading since April 2017, from 61.8 in September. The survey's factory employment measure dropped to 56.8 in October from 58.8 in the prior month.
US auto sales take a hit
US auto sales rose slightly in October, hit by rising interest rates and higher vehicle prices.
No.2 carmaker Ford on Thursday reported a five-percent decline in sales for its pickup trucks, while overall sales fell 3.9 percent to 192,616 units in October hurt by lower passenger car demand.
Ford vehicles are seen on a dealership's lot. /VCG Photo
Ford vehicles are seen on a dealership's lot. /VCG Photo
Ford said consumers are relatively confident about economic conditions, albeit slightly less so than in September, citing data for October from University of Michigan's consumer sentiment index, adding payments have crept up with rising interests rates.
US car sales, which dropped two percent last year from a record high of 17.55 million in 2016, are expected to fall further in 2018, hurt by rising interest rates and the return of more late-model used cars to dealer lots.
Source(s): Reuters