Economic activity in the manufacturing sector expanded in October for the 10th consecutive month, the Institute for Supply Management said on November 2, with its Manufacturing PMI rising 1.0 point to 55.5%.
The Manufacturing PMI registered 55.5% in October, 1.0 percentage point above the September figure of 54.5%, according to Susan Spence, chair of ISM's Manufacturing Business Survey Committee. The reading topped the 54.5 forecast of analysts polled by Dow Jones. A PMI above 50 indicates expansion.
The Production Index climbed 2.3 percentage points to 59.0%, its highest level since November 2021 and its 12th straight month of growth. The New Orders Index expanded for the 10th consecutive month, registering 55.5%, up 0.2 point from September. Four of the five subindexes that make up the PMI grew faster than in September, with employment the exception, slipping to 52.4 from 52.7.
The Prices Index dropped by nearly three percentage points but remained elevated at 75.2, its 25th consecutive month above 50, driven by steel and aluminum costs, tariffs and petroleum-based products. Twelve manufacturing industries reported growth in October, led by plastics and rubber products, electrical equipment, appliances and components, and machinery.
ISM said the October PMI corresponds to roughly a 2.7% annualized increase in real GDP, based on past relationships between the index and the economy. S&P Global's final U.S. manufacturing PMI was 54.9, below its flash estimate of 56.0 and September's 55.9.
