One of the most followed economic reports is the Manufacturing ISM® Report On Business®. The Institute for Supply Management releases the report on the first business day of every month.
Economists and traders study this report because it offers the first glimpse of economic activity in the prior month. The latest data showed that economic activity in the manufacturing sector fell in October.
That trend may continue as new orders fall and manufacturers run out of the backlogs that have kept them busy for the past few months. The Backlog of Orders Index’s sharp fall indicates order backlogs are shrinking after a 27-month expansion period.
While the report was bearish for the economy, there was some good news.
Inflation pressures are easing.
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