U.S. manufacturing activity contracted for an eighth consecutive month as output fell and demand weakened

U.S. manufacturing activity contracted for an eighth straight month in October, hurt by falling output and weak demand. The Institute for Supply Management's (ISM) manufacturing index fell 0.4 points to 48.7, according to data released on Monday. A reading below 50 signals a contraction in industry activity, and the manufacturing index has fluctuated within a narrow range for most of the year. The ISM output indicator fell 2.8 points to 48.2, the second time in the past three months that it has fallen below the 50 mark, the report showed. Weak output kept manufacturing employment under pressure. The ISM employment indicator contracted for a ninth straight month, although the pace of decline was slightly slower than in September.