ISM: Manufacturing expands in October; 14th consecutive month of growth

Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 101st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business. The report was issued on November 1st by Timothy R. Fiore, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee. The report noted:

• Manufacturing expanded in October as the PMI registered 58.7 percent, a decrease of 2.1 percentage points from the September reading of 60.8 percent. This indicates growth in manufacturing for the 14th consecutive month and continues expansion consistent with pre-hurricane levels. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
• The New Orders Index registered 63.4 percent in October, which is a decrease of 1.2 percentage points when compared to the 64.6 percent reported for September, indicating growth in new orders for the 14th consecutive month. "New Order expansion continues at a strong pace, consistent with pre-hurricane levels," stated Fiore.
• The Production Index registered 61 percent in October, which is a decrease of 1.2 percentage points when compared to the 62.2 percent reported for September, indicating growth in production for the 14th consecutive month. "Production expansion continues at a strong pace in spite of supply chain difficulties including the reduction of inventory levels seen during the period," stated Fiore.
• The Employment Index registered 59.8 percent in October, a decrease of 0.5 percentage point when compared to the September reading of 60.3 percent. This indicates growth in employment in October for the 13th consecutive month. "Employment levels remain strong, consistent and in keeping pace with production output," stated Fiore.

The Manufacturing ISM Report On Business is based on data compiled from purchasing and supply executives nationwide.

Source and more information: Institute for Supply Management.