Manufacturing contracted in October, according to the the nation’s supply executives in the latest Manufacturing ISM Report On Business.
 
The PMI indicates a significantly faster rate of decline in manufacturing when comparing October to September. According to ISM, it appears that manufacturing is experiencing significant demand destruction as a result of recent events, with members indicating challenges associated with the financial crisis, interruptions from the Gulf hurricane, and the lagging impact from higher oil prices.
 
This is the lowest level for the PMI since September 1982 when it registered 38.8%. In the report, inflationary pressures dissolved as the Prices Index fell to 37%, the lowest since December 2001 when it registered 33.2%. Export orders also contracted for the first time following 70 months of growth.
 
Full report here.