Investing.com - Manufacturing activity in the U.S. expanded at the slowest rate in more than two years in October, dampening optimism over the strength of the economy and fanning hopes the Federal Reserve could delay raising interest rates until next year, industry data showed on Monday.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 50.1 last month from a reading of 50.2 in September. Analysts had expected the manufacturing PMI to dip to 50.0 in October.
The New Orders Index registered 52.9, an increase of 2.8 points from the reading of 50.1 in September.
The Employment Index registered 47.6, 2.9 points below the September reading of 50.5.
The Prices Index registered 39.0, an increase of 1.0 point from the September reading of 38.0, indicating lower raw materials prices for the 12th consecutive month.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Comments from the panel reflect concern over the high price of the dollar and the continuing low price of oil, mixed with cautious optimism about steady to increasing demand in several industries.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.85, compared to 96.81 ahead of the report.
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