The Institute for Supply Management said its manufacturing index rose one point to 55.5 in October, extending expansion in the sector to 10 consecutive months. Readings above 50 indicate expansion. Production reached its highest level since late 2021, while new orders remained in expansion territory and reached their highest level since July.
What it means
The October reading was the manufacturing index’s second-highest level in more than four years and followed a roughly three-year sector slump. Factory employment increased for a fourth consecutive month, the longest such stretch since early 2022.
Factories reported elevated raw-material prices and longer supplier delivery times in October. The ISM prices gauge declined to 75.2 from the prior month. The Federal Reserve’s preferred inflation measure increased 3.6% from a year earlier in September, compared with the central bank’s 2% inflation goal.
Key facts
- The Institute for Supply Management manufacturing index was 55.5 in October.
- The index has indicated expansion for 10 consecutive months.
- Production was at its highest level since late 2021.
- New orders reached their highest level since July.
- Factory head count rose for a fourth month.
- The largest October index movement in either direction was 2.8 points.
- The ISM prices gauge was 75.2 in October.
- The Federal Reserve’s preferred inflation measure rose 3.6% year over year in September.
Source: Institute for Supply Management manufacturing report