U.S. PMI Manufacturing Index Slightly Slipped to 50.8%

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DG365FD46564GFH654FU898 Today the U.S. Manufacturing ISM report was published and the U.S. Manufacturing PMI reached 50.8% during October. The U.S. Manufacturing PMI, which is an index that shows the economic activity in the U.S. manufacturing sector, grew for the 27th consecutive month; the growth rate declined from 51.6% in September to 50.8% in October i.e. a 0.8 percent points decrease. This means that the U.S. manufacturing sector is still growing but at a slightly slower pace in October compared to September. Among the factors that were examined in this survey: one of the sharpest decrease was in customers’ inventories from 49.0% to 43.5% – a decrease of 5.5 percent point; exports also fell by 3.5 percent points to 50% – still in a growing rate; on the other hand, among the factors that expanded were new orders – a rise of 2.8 percent point to 52.4% and backlog of orders – an increase of 6.0 percent point to 47.5. According to Roache et. al (2008) it was suggested that the PMI Manufacturing ISM report has a negative correlation with gold and silver prices, without controlling the US dollar effect. Currently, it seems that this news doesn’t have much of an effect