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Mr. Glassman said that he was very surprised by the steep drop in the new orders component of the index.
It is "excellent news to see some bottoming in the new- orders component," said Steven Wieting, an economist at Salomon Smith Barney Inc. in New York.
That was in sharp contrast to the manufacturing survey, which showed a falloff in the new orders component, to 49.9, from 50.9.
"It's a weak indication not only in the headline figure, but also in the worst possible place: the orders component," said Pierre Ellis, senior economist at Decision Economics.
However, the new orders component fell to 49.2 percent, hitting a notch below 50 percent for the first time since June , 2009 when it was 48.9 percent.
The money markets have unfrozen, with key measures of borrowing rates now back where they were before the Lehman collapse.The economic data have seen the better-than-expected non-farm payrolls, the continued strength of Chinese output and (according to Axa Investment Managers) the rebound in the new orders component of manufacturing indices above 50.
Similar(52)
The new-orders component of the index increased sharply, to 53.1 from 46.3 in July.
The purchasing managers' new-orders component, which accounts for 30percentt of the index, fell to 38.3 in October from 50.3 in September.
The manufacturing report's new-orders component, which accounts for about a third of the overall index and is considered a leading indicator of future production, fell to 45.2 from 46.2 in March.
At 50.9, the index was barely above the line that separates expansion from contraction; the new-orders component was below it.David Rosenberg, an economist at Gluskin Sheff, a Canadian asset manager, has consistently raised doubts about the strength of the recovery.
Moreover, any odd order component of G is also an odd order component of K / H. .
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