Manufacturing PMI in the USA is at the lowest level in 28 months!

S&P Global has released the leading US manufacturing, services and composite PMI data for October.

Accordingly, manufacturing industry PMI decreased by 2.1 points to 49.9 in October compared to the previous month.

The index, which fell to its lowest level in 28 months by falling above the market expectations, was expected to take the value of 51 in this period. The index, which pointed out that there was a contraction in the sector for the first time since June 2020, was 52 in September.

The contraction in economic activity continues

The service sector PMI in the USA, on the other hand, decreased by 2.7 points to 46.6 in October compared to the previous month.

In the said period, the index was expected to be 49.2, which showed that the contraction in the services sector continued by falling to its lowest level in 2 months. The index had taken the value of 49.3 in September.

Composite PMI, which covers manufacturing and services sectors, also decreased by 2.2 points month-on-month to 47.3 in October. Indicating that the contraction in economic activity continues by falling to the lowest level in 2 months, as in the services sector, the composite PMI took the value of 49.5 in September.

S&P Global Chief Economist Chris Williamson, whose views were included in the statement, stated that the economic recession in the USA gained significant momentum in October, and confidence in the economic outlook deteriorated sharply.

A PMI value of 50 and above indicates expansion in the sector, and below 50 indicates contraction.