U.S. Manufacturing Surpasses Expectations in October
U.S. manufacturing expands faster than expected in October, with production at its strongest pace in nearly five years.
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U.S. manufacturing expanded faster than expected in October, with production growing at its strongest pace in nearly five years, according to the Institute for Supply Management (ISM). The manufacturing purchasing managers index rose to 55.5 in October, up from 54.5 in September, marking the second-highest reading in over four years. This result exceeded all but one forecast from economists surveyed by Bloomberg.
Readings above 50 indicate expansion, and manufacturing has now expanded for 10 consecutive months. The production index climbed 2.3 points to 59, its highest level since November 2021. New orders also rose to 55.5, the strongest reading since July, and marked the tenth consecutive month of growth.
Manufacturers reported some relief from rising costs, as the ISM’s prices index fell 2.7 points to 75.2. Although input-price increases remained elevated, the decline suggests that price pressures are easing across the sector.
Hiring continued to expand, with the employment index registering 52.4, slightly down from September’s 52.7 but still above 50 for a fourth consecutive month. This marked the longest stretch of manufacturing employment growth since early 2022.
Industry Growth and Contraction
The expansion extended across much of the sector, with twelve industries reporting growth, including electrical equipment, machinery, computer and electronic products, primary metals, and transportation equipment. Three industries reported contraction: printing, paper, and nonmetallic mineral products.
Five of the six largest manufacturing industries expanded, indicating broad-based growth. Manufacturers’ inventories also returned to growth, rising to 51.4 from 48.6. Customers’ inventories remained at a level considered too low by ISM, a condition that can support future production as customers replenish supplies.
Export orders improved, rising to 51.2 from 50.9, while the imports index increased to 52.9 from 51, showing continued demand for U.S. goods and services.
Source: Breitbart
