Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the sixth consecutive month — after it had dipped significantly in the early stages of the coronavirus — say the nation’s supply executives in the latest Manufacturing ISM Report on Business.
The October PMI registered 59.3%, up 3.9% from the September reading of 55.4%. This figure indicates expansion in the overall economy for the sixth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth. The New Orders Index registered 67.9%, an increase of 7.7% from the September reading of 60.2%. The Production Index registered 63%, an increase of 2% compared to the September reading of 61%. The Backlog of Orders Index registered 55.7%, 0.5% higher compared to the September reading of 55.2%. The Employment Index registered 53.2%, an increase of 3.6% from the September reading of 49.6%. The Supplier Deliveries Index registered 60.5%, up 1.5% from the September figure of 59%.
The Inventories Index registered 51.9 percent; 4.8% higher than the September reading of 47.1%. The Prices Index registered 65.5%, up 2.7% compared to the September reading of 62.8%. The New Export Orders Index registered 55.7 percent; an increase of 1.4% compared to the September reading of 54.3%. The Imports Index registered 58.1%, a 4.1-percentage point increase from the September reading of 54%.
“The manufacturing economy continued its recovery in October,” said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories; with every month, they are becoming more proficient at expanding output.”
Of the 18 manufacturing industries, 15 reported growth in October, in the following order: Apparel, Leather & Allied Products; Fabricated Metal Products; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Machinery; Furniture & Related Products; Paper Products; Wood Products; Chemical Products; Primary Metals; Computer & Electronic Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing. The two industries reporting contraction in October are: Textile Mills; and Printing & Related Support Activities.