Manufacturing Sector Expanded for 10th Straight Month in October: Industry Index

Economic activity in the nation's supply chain enjoyed broad-based improvement in October, a new Institute for Supply Management (ISM) Purchasing Managers' Index (PMI®) Report reveals.

September's gains were extended in several areas of the supply chain last month, the Institute's latest report finds:

• The manufacturing sector expanded for the 10th straight month.
• The overall economy expanded for the 24th straight month.
• New orders grew for the 10th straight month.
• The production index increased for the 12th straight month, hitting its highest level since November of 2021.
• Supplier delivers slowed, a sign that the economy is improving and customer demand is increasing.
• Five of the six largest manufacturing industries expanded (Machinery; Computer & Electronic Products; Transportation Equipment; Chemical Products; and Food, Beverage & Tobacco Products).
• Employment continued to grow, though at a slower rate.
• Three of the four "demand indicator" indexes tracked by the monthly study continued to expand.

And, while customers' inventory levels continued to shrink, that's actually a good sign, since it suggests that production is set to increase, the Institute's Manufacturing Business Survey Committee Chair Susan Spence explained in a press release:

"In October, three of four demand indicators (the New Orders, Backlog of Orders and New Export Orders indexes) remained in expansion, and the Customers' Inventories Index remained in 'too low' territory, contracting at the same rate as last month. A 'too low' status for the Customers' Inventories Index is usually considered positive for future production."