US Manufacturing activity drops in October

US Manufacturing activity dropped in October because of lower demand amid global slowdown. The Institute for Supply Management-s factory index dropped to 50.8 in October compared to 51.6 in the previous month of September. Any reading higher than 50 indicates growth while any reading lower than 50 indicates contraction. Thought reading of 50.8 indicates slight growth, but it remains a concern as growth dropped compared to previous month.

The main reason behind this lower manufacturing activity was lower demand amid the global slowdown. US export demand almost stalled in the last month because of lower demand from other countries. The domestic demand was also lower because of lower consumer confidence and high unemployment rate. US economy is still growing at a handsome pace but the economic recovery is very much fragile. At the same time, World economy is now at a crucial stage with possibility of another recession inEurope.

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