The Industrial Supply Association has posted its October Economic Indicator report, which shows a notable decline in ISA's Distributor Index in September, while its Manufacturer's Index posted modest growth. This comes after both indices showed major growth in September.
In September, the Distributors Index fell from 66.3 to 57.1, while the Manufacturers Index rose from 60.1 to 64.9. Meanwhile, the Institute for Supply Management's Purchasing Manager's Index dropped from 51.5 to 49.4.
For all three indexes, a reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction. The October readings indicate that ISA member distributors and manufacturers continue to experience expansion, with distributors at a slower rate than September and manufacturers at a faster rate. Meanwhile, the PMI indicates overall contraction for the industrial economy.