Manufacturing PMI® at 59.3%
Economic activity in the manufacturing sector grew in October, with the overall economy notching a sixth consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.
The October Manufacturing PMI® registered 59.3 percent. The New Orders Index registered 67.9 percent, an increase of 7.7 percentage points from the September reading of 60.2 percent. The Production Index registered 63 percent, an increase of 2 percentage points compared to the September reading of 61 percent. The Backlog of Orders Index registered 55.7 percent, 0.5 percentage point higher compared to the September reading of 55.2 percent. The Employment Index registered 53.2 percent, an increase of 3.6 percentage points from the September reading of 49.6 percent. The Supplier Deliveries Index registered 60.5 percent, up 1.5 percentage points from the September figure of 59 percent.
Of the 18 manufacturing industries, 15 reported growth in October, in the following order: Apparel, Leather & Allied Products; Fabricated Metal Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Machinery; Furniture & Related Products; Paper Products; Wood Products; Chemical Products; Primary Metals; Computer & Electronic Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing‡.
Manufacturing grew in October, as the Manufacturing PMI® registered 59.3 percent, 3.9 percentage points higher than the September reading of 55.4 percent. The month-over-month gain of 3.9 percentage points is the second-biggest positive change in the Manufacturing PMI® since May 2009, when it increased by 4.2 percentage points. (There was a 9.5-percentage point increase in June 2020, as activity picked up significantly after coronavirus-induced shutdowns.) The Manufacturing PMI® signaled a continued rebuilding of economic activity in October, with all five contributing subindexes in moderate to strong growth territory. Five (Fabricated Metal Products; Food, Beverage & Tobacco Products; Chemical Products; Computer & Electronic Products; and Transportation Equipment) of the big six industry sectors continue to expand.