Manufacturing PMI drops to 2-year low in October on weak demand

A day after release of dismal core sector numbers, purchasing managers’ index (PMI) survey on Friday showed manufacturing activities’ growth fell to a two-year low in October. 

PMI fell to a two-year low of 50.6 in October from 51.4 in September. A print above 50 means expansion, while a score below that denotes contraction. PMI was lower at 50.3 in October, 2017.

The PMI report said the cooling of manufacturing sector conditions continued in October, with both factory orders and production rising at the weakest rates.

“Subsequently, job creation softened to a six-month low, while companies were reluctant to hold excess stock and