ISM’s October 2011 Manufacturing report on Business came in at 50.8, a level just above contraction.Last month was 51.6. Analysts had expected an increase after last quarter’s 2.5% GDP print. Production also declined to 50.1, while employment declined to 53.5. The prices paid sub-index collapsed from 56.0 to 41.0, denoting price deflation. Meanwhile, new orders did rise to 52.4 from 49.6, a bright spot given it is a forward looking measure. Overall, this was a relatively weak report and will fuel calls for nominal GDP targeting at the Fed. The chart is coming shortly.
