by Bill McBride on 11/01/2017 10:04:00 AM
The ISM manufacturing index indicated expansion in October. The PMI was at 58.7% in October, down from 60.8% in September. The employment index was at 59.8%, down from 60.3% last month, and the new orders index was at 63.4%, down from 64.6%.
From the Institute for Supply Management: October 2017 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 101st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.
The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The October PMI® registered 58.7 percent, a decrease of 2.1 percentage points from the September reading of 60.8 percent. The New Orders Index registered 63.4 percent, a decrease of 1.2 percentage points from the September reading of 64.6 percent. The Production Index registered 61 percent, a 1.2 percentage point decrease compared to the September reading of 62.2 percent. The Employment Index registered 59.8 percent, a decrease of 0.5 percentage point from the September reading of 60.3 percent. The Supplier Deliveries Index registered 61.4 percent, a 3 percentage point decrease from the September reading of 64.4 percent. The Inventories Index registered 48 percent, a decrease of 4.5 percentage points from the September reading of 52.5 percent. The Prices Index registered 68.5 percent in October, a 3 percentage point decrease from the September level of 71.5, indicating higher raw materials prices for the 20th consecutive month. Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all continuing to grow in October, supplier deliveries continuing to slow (improving) and inventories contracting during the period. Prices continue to remain under pressure. The Customers’ Inventories Index remains at low levels.”
Click on graph for larger image.
Here is a long term graph of the ISM manufacturing index.
This was below expectations of 59.5%, and suggests manufacturing expanded at a slower pace in October than in September.
Still a strong report.