NEW YORK Nov 1 The pace of growth in the U.S.
manufacturing sector hit a one-year-low in October as factory
output slowed sharply, an industry report showed on Friday.
Financial data firm Markit said its final U.S. Manufacturing
Purchasing Managers Index stood at 51.8 last month. That was
better than an initial estimate of 51.1 but still a point below
September's reading and the worst final showing since October,
A reading above 50 indicates expansion in the sector
A sharp slowdown in output, which at 50.6 was the lowest in
13 months, was the main drag on growth. The subindex stood at
55.3 in September. New orders from domestic customers also
slowed, though overseas demand rose slightly.
Chris Williamson, chief economist at Markit, said a partial
government shutdown in the first half of October likely
contributed to the slowdown in output and growth.
Firms hired workers at a slightly faster rate in October,
however, with the subindex rising to 52.7 from 51.3.
Williamson said that might suggest manufacturing's woes in
October will prove temporary.
"However, even the faster growth of employment remains only
modest, consistent with barely any increase in official data on
manufacturing payrolls," he said.
Job growth in the broader U.S. economy was tepid in
September, and economists polled by Reuters expect a government
report due on Nov. 8 to show hiring slowed further in October.
The Markit data has lately painted a gloomier picture of the
manufacturing sector than data from the Institute for Supply
Management, which showed U.S. factories saw their fastest pace
of growth in nearly 2-1/2 years in September.
The ISM will release its October index at 10 a.m. on Friday
The two surveys use some different methodologies, including
one related to seasonal adjustment.