The final results of Markit's October U.S. Purchasing Managers Index survey are out.
The headline reading came in at 51.8, down from 52.8 in September but up from the October flash estimate of 51.1.
The sub-components of the report are broken down in the table at right.
Economists predicted the index would fall to 51.1 in October, as preliminary survey results published by Markit on October 24 suggested.
The output sub-index fell to 50.6 from September's 55.3 reading, suggesting a sharp slowdown in the growth of manufacturing output this month.
However, the output number was above the flash reading of 49.5, which initially suggested that America had seen its first decline in manufacturing output since September 2009. (Numbers below 50 on the index indicate varying rates of decline while numbers above 50 indicate varying rates of increase.)
"Manufacturers linked the slight increase in output primarily to a weaker rise in new orders," said Markit in the release. "Total incoming new work rose modestly and at the slowest pace in six months in October. Panellists commented on greater client demand in both the domestic and international markets."
On Wednesday, the Federal Reserve failed to acknowledge the government shutdown in its October FOMC statement, an addition that was widely expected by economists across Wall Street.
The statement caused a sell-off in the Treasury market as investors priced in greater chances that the central bank could begin to taper down its quantitative easing program before its March meeting.
ISM's October Chicago Purchasing Managers Index unexpectedly surged to 65.9 from last month's 55.7 reading. The report caused another sell-off in the Treasuries on Thursday.
"In its narrative the organization says that businesses were 'seemingly unaffected by the [government] shutdown'," said Andrew Wilkinson, chief economic strategist at Miller Tabak, of the Chicago PMI release. "In light of the Fed’s failure to draw additional attention to the impact of the fiscal showdown in Washington, that message is likely to resonate with investors."
Today, 10-year U.S. Treasury futures are trading down 0.3%, and the yield on the 10-year note is 2.58%, up 3 basis points from Thursday's close.
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