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Automobile industry

US Manufacturing Growth Slows in October Amid Weaker Demand

Strategic Insights

— 2 min read

US manufacturing growth slowed in October due to weaker demand for exports and slower production at factories. However, companies ordered more goods, factories slashed their stockpiles, and auto sales rose, suggesting that manufacturing activity could rebound in the coming months. The Institute for Supply Management's manufacturing index dropped to 50.8, down from 51.6 in September, but new orders rose to 52.4, indicating a positive trend.

Key Takeaways:

  • US manufacturing growth slowed in October due to weaker demand for exports and slower production at factories.
  • The Institute for Supply Management's manufacturing index dropped to 50.8, down from 51.6 in September.
  • Companies ordered more goods, factories slashed their stockpiles, and auto sales rose, suggesting that manufacturing activity could rebound in the coming months.
  • The annual rate of construction spending is roughly half the $1.5 trillion that economists consider healthy.
  • US automakers reported stronger sales in October, with sales now back at the same pace they were before the March earthquake in Japan.
  • Chrysler's U.S. sales jumped 27 percent in October, while Ford Motor Co.'s sales rose 6 percent, and General Motors Co.'s sales were up 2 percent.
  • Nissan and Hyundai reported big jumps in sales, while Honda and Toyota continued to struggle.
  • The Dow Jones industrial average closed down 297 points for the day due to worries about a planned referendum in Greece.
  • Europe's financial troubles have forced many nations to cut demand for imported goods, affecting manufacturing in the U.S. and China.

Statistics:

  • The Institute for Supply Management's manufacturing index dropped to 50.8 in October, down from 51.6 in September.
  • The index measuring new orders rose to 52.4 in October, the highest reading in six months.
  • U.S. automakers reported a 27% increase in U.S. sales, with Ford Motor Co.'s sales rising 6% and General Motors Co.'s sales increasing 2%.
  • The annual rate of construction spending is roughly half the $1.5 trillion that economists consider healthy.
  • The Dow Jones industrial average closed down 297 points for the day due to worries about a planned referendum in Greece.

Sources:

  • Associated Press, "US manufacturing grew more slowly in October," October [no date listed in the original text].
  • Institute for Supply Management, "ISM Manufacturing Index."
  • Paul Dales, senior U.S. economist at Capital Economics, quoted in Associated Press, "US manufacturing grew more slowly in October."
  • Joshua Shapiro, chief U.S. economist at MFR Inc., quoted in Associated Press, "US manufacturing grew more slowly in October."

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