Source: Economics Group of Wells Fargo Bank, N.A.
Summary
The contraction in manufacturing activity grew more widespread in October as the ISM manufacturing index sank to 48.7, extending the factory slump into its eighth month. Some components showed a milder pace of contraction, but production slipped below 50.Wonder to Worry: Tariffs and the Manufacturing Outlook
In the absence of hard data during the government shutdown, we can turn to purchasing managers to put a finger on the pulse of the underlying dynamics impacting businesses in the current environment. As a reminder the shutdown began on October 1, and the manufacturing ISM was released this morning and the service sector ISM report is due out on Wednesday—both measure economic activity during the month of October.