By Lucia Mutikani

WASHINGTON (Reuters) -U.S. manufacturing contracted for an eighth straight month in October as new orders remained subdued, and suppliers were taking longer to deliver materials to factories against the backdrop of tariffs on imported goods.

The Institute for Supply Management (ISM) said on Monday its manufacturing PMI fell to 48.7 last month from 49.1 in September. A reading below 50 indicates contraction in manufacturing, which accounts for 10.1% of the economy.

Still, the PMI remained above 42.3, a level that the ISM said over time was consistent with an expansion of the overall economy.

Economists polled by Reuters had forecast the PMI edging up to 49.5. A month-long shutdown of the U.S. government is, however, making it difficult to get a good read of the economy

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