U.S. manufacturing activity expands at slowest pace in over 2 years

Economic activity of the U.S. manufacturing sector in October expanded at the slowest pace in more than two years, indicating a strong U.S. dollar and a weak global economy might continue constraining factory activities, an industry survey showed Monday.

The manufacturing index, also known as the purchasing managers index (PMI), fall to 50.1 in October, the lowest reading since May 2013, from 50.2 in September, the Institute for Supply Management (ISM) said in a report.

A reading above 50 indicates the sector is generally expanding, while a reading below that level indicates contraction.

While the ISM's new-orders index rose to 52.9 in October from September's reading of 50.1, and the production index also rose 1.1 points to 52.9, the employment index dropped 2.9 points to 47.6, the lowest level since August 2009.

Businesses surveyed expressed continuing concern over "the high price of the dollar" and cautious optimism about "steady to increasing demand" in several industries, said the ISM.

Seven of the 18 manufacturing industries tracked by the ISM reported growth in October, while nine industries reported contraction in the month. Enditem