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Manufacturing Improved in October
Manufacturing made strong progress in October, with the ISM’s manufacturing index rising from 51.5 to 51.7. Although the improvement in the overall index was modest, the details of the report were strong, indicating further improvement in coming months. Currently, the index is at its highest levels since May.
Despite only rising 0.2 points in October, movement within the survey’s components suggest a strong trend. Specifically, new orders picked up 1.9 points, rising to 54.2. In addition a 0.5 point decline in inventories put inventory accumulation at its neutral threshold of 50. The gap between new orders and inventories, a proxy for future production, more than doubled to 4.2 points.
Production returned to positive territory in October, reaching 52.4. The employment portion of the index gave up some of the outsized gain it experienced in September but remained strong at 52.1. The weak global economy continues to drag on growth, with new export orders falling farther into negative territory in October, reaching 48.0.
Read the ISM release.
Manufacturing Improved in October
Despite only rising 0.2 points in October, movement within the survey’s components suggest a strong trend. Specifically, new orders picked up 1.9 points, rising to 54.2. In addition a 0.5 point decline in inventories put inventory accumulation at its neutral threshold of 50. The gap between new orders and inventories, a proxy for future production, more than doubled to 4.2 points.
Production returned to positive territory in October, reaching 52.4. The employment portion of the index gave up some of the outsized gain it experienced in September but remained strong at 52.1. The weak global economy continues to drag on growth, with new export orders falling farther into negative territory in October, reaching 48.0.
Read the ISM release.