Manufacturing Momentum

The latest reading of October U.S. manufacturing activity came in at 50.2, its lowest level since May 2020. Moreover, the index has been steadily declining since peaking at 64.70 in March 2021. A reading above 50 indicated activity is expanding, below 50 activity is contracting. If manufacturing enters recessionary territory, which is very likely as soon as next month, it would be manufacturing’s fifth recession since the Housing Bust.