(Kitco News) As the overall manufacturing index of the Institute of Supply Management fell in October, but was higher than expected, the price of gold rose to a daily high.
Last month, the ISM manufacturing index was 60.8%, which was higher than the market consensus of 60.5%. However, the monthly data is 0.3 percentage points lower than the 61.1% in September.
The report said: “This figure shows that the overall economy has expanded for the 17th consecutive month after contracting in April 2020.”
Such readings with a diffusion index above 50% are considered a sign of economic growth, and vice versa. The farther the indicator is above or below 50%, the greater or the smaller the rate of change.
After the release, the price of gold rose slightly to an intraday high. The final trading price of gold futures on the New York Mercantile Exchange in December was US$1,793.40, an increase of 0.53% on the same day.
The employment index rose to 52% in October, 1.8 percentage points higher than the previous month. The new order index dropped from 66.7% to 59.8%, and the production index dropped from 59.4% to 59.3%.
The report pointed out that in the face of increasing demand, the company continues to deal with “unprecedented obstacles.”
“All areas of the manufacturing economy are affected by record delivery times of raw materials, continued shortages of key materials, rising commodity prices, and difficulties in product transportation. Issues related to global pandemics-short-term stoppages caused by worker absenteeism, shortages of parts, filling The difficulties of vacant positions and overseas supply chain issues-continue to limit the growth potential of the manufacturing industry,” said Timothy Fiore, chairman of the Manufacturing Enterprise Survey Committee of the Institute of Supply Management.