Business activity in the United States contracted for the fourth straight month in October, with manufacturing and services companies reporting weaker demand in a survey of purchasing managers, in the latest evidence of an economy slowing in the face of high inflation and rising prices. interest rates.
S&P Global said on Monday its preliminary composite US Purchasing Managers’ Index (PMI), which tracks the manufacturing and services sectors, dropped to 47.3 this month from a final reading of 49.5 in September.
A score below 50 indicates contraction in the private sector. Not counting losses during the first wave of the Covid-19 pandemic in 2020, that was the fastest pace of retreat since the 2007-2009 global financial crisis, at least by S&P Global’s measure.
“The US economic contraction gained significant momentum in October, while confidence in the outlook also deteriorated dramatically,” said Chris Williamson, chief business economist at S&P.
“The decline was led by service activity, fueled by rising cost of living and tightening financial conditions.”
But the S&P Global survey may be exaggerating the slowdown. Rival research by the Institute for Supply Management (ISM) showed the manufacturing and service sectors were expanding through September.
The preliminary manufacturing PMI dropped to 49.9 this month, its first reading in contraction territory since June 2020, from 52.0 in September. Economists polled by Reuters had forecast the index at 51.0.
The preliminary PMI for the services sector fell to 46.6 from 49.3 in September.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
