US manufacturing slumps for eighth straight month in October as trade uncertainty weighs on demand

US factory activity shrank in October for an eighth straight month, driven by a pullback in production and tepid demand.

The Institute for Supply Management’s manufacturing index eased 0.4 point to 48.7, according to data released Monday. Readings below 50 indicate contraction, and the measure has been stuck in a narrow range for most of this year.

The group’s production index slid 2.8 points to 48.2, marking the second month in the last three that output has contracted. The weakness is keeping headcounts depressed. The ISM’s employment gauge shrank for a ninth straight month, albeit at a slightly slower pace than in September.

Manufacturers are still concerned about the general lack of clarity about trade policy from the Trump administration, Susan Spence, chair of the ISM Manufacturin