1 November 2016


Manufacturing activity in the U.S. improved more than expected in October, fueling optimism over the strength of the economy, industry data showed on Tuesday.

In a report, the Institute for Supply Management said its index of purchasing managers inched up to 51.9 last month from a reading of 51.5 in September. Analysts had expected the manufacturing PMI to rise to 51.7 in October.

The New Orders Index registered 52.1, a decrease of 3 points from the September reading of 55.1.

The Production Index registered 54.6, 1.8 points higher than the September reading of 52.8.

The Employment Index registered 52.9, an increase of 3.2 points from the September reading of 49.7.

The Prices Index registered 54.5 in October, an increase of 1.5 points from the September reading of 53.0.

U.S. construction spending unexpectedly fell in September as outlays on private nonresidential structures recorded their biggest decline in nine months, which could see a mild downward revision to the third-quarter economic growth estimate.

The Commerce Department said on Tuesday that construction spending slipped 0.4 percent after an upwardly revised 0.5 percent drop in August. Construction outlays were down 0.2 percent from a year ago.

Economists polled by Reuters had forecast construction spending rising 0.5 percent in September after a previously reported 0.7 percent drop in August. July’s outlays were revised up to show them rising 0.5 percent instead of falling 0.3 percent as previously reported.