Index of Manufacturing in U.S. Rose to 51.3 in October [View all]
The Markit Economics preliminary index of U.S. manufacturing rose to 51.3 in October from a final reading of 51.1 a month earlier, the London-based group said today.
A reading of 50 in the purchasing managersí measure is the dividing line between expansion and contraction. The median forecast in a Bloomberg survey of economists was 51.5. Estimates ranged from 50.5 to 52.1.
Sustained auto sales and rising demand for homebuilder materials may be helping sustain manufacturing in the face of limited export demand as the global economy cools. Looming changes to U.S. fiscal policy continue to weigh on the industry as more than $600 billion in federal spending cuts and tax increases are scheduled to take effect in January unless Congress acts.
A gauge of euro-area manufacturing and services contracted more than economists forecast in October, suggesting the economy may struggle to regain strength.