The 2020 Mid-Year Economic Update_long

Manufacturing Sector Expansion Grows in October

PMI grows 2.6 percent from September for 17th straight month of expansion.

The manufacturing sector expanded in October, according to supply executives in the latest Manufacturing ISM Report on Business. The October PMI was 59 percent, 2.4 percentage points higher than September's 56.6 percent.

The New Orders Index registered 65.8 percent, an increase of 5.8 percentage points from September. The Production Index registered 64.8 percent, 0.2 percentage points above September.

The Employment Index of 55.5 percent increased 0.9 percent from September's 54.6 percent. Inventories of raw materials registered 52.5 percent, up 1 percentage point from the September reading of 51.5 percent.

A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

"Comments from the panel generally cite positive business conditions, with growth in demand and production volumes," said Bradley Holcomb, chairman of the Institute for Supply Management Manufacturing Business Survey committee.

Of the 18 manufacturing industries, 16 are reporting growth in October in the following order: Plastics & Rubber Products; Textile Mills; Fabricated Metal Products; Miscellaneous Manufacturing; Primary Metals; Electrical Equipment, Appliances & Components; Nonmetallic Mineral Products; Food, Beverage & Tobacco Products; Chemical Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Transportation Equipment; Furniture & Related Products; Paper Products; Machinery; and Computer & Electronic Products.

The only industry reporting contraction in October is Petroleum & Coal Products.

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