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The US manufacturing sector collapsed in October

The US manufacturing sector collapsed in October

© Reuters. A woman works on the inner mold of a shoe at the San Antonio Shoe Factory in Del Rio, Texas, US, April 3, 2023. REUTERS/Kylie Greenlee Bell

WASHINGTON (Reuters) – The U.S. manufacturing sector contracted sharply in October after signs of improvement in previous months, with new orders falling and hiring likely to be affected by strikes by the United Auto Workers (UAW) union.

According to data from the Institute for Supply Management (ISM), the manufacturing PMI fell last month to 46.7 from 49.0 in September, the highest value since November 2022. This was the 12th consecutive month that the PMI remained below the 50 threshold. Separates growth from contraction. This is the longest period since the Great Recession of 2007-2009.

Economists polled by Reuters had expected the index to remain unchanged at 49.0.

PMI was likely held back by UAW strikes at Ford Motor, General Motors, and Stellantis (BIT:) plants that disrupted supply chains and prompted automakers to fire thousands of non-striking workers.

The companies then reached interim agreements with the UAW, which could raise the November PMI.

(Translated by Luca Fratangelo, Edited by Gianluca Semeraro)

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