US MANUFACTURING OUTPUT CONTRACTS FOR THE FIRST TIME SINCE SEPTEMBER 2009

The preliminary results of Markit's October Purchasing Manager Index survey were worse than expected. The headline index fell to 51.1 from September's 52.8 reading. Economists predicted a smaller drop to 52.5. Any reading above 50 indicates expansion, whereas sub-50 readings indicate contraction — so today's report suggests the pace of expansion in American manufacturing slowed significantly in October. The table at right shows changes in the various sub-components of the report. Most notably,...