The manufacturing sector expanded in October, according to the latest Manufacturing ISM Report on Business. The Purchasing Managers Index registered 50.8 percent, down 0.8 percent from September, indicating expansion continued but at a slower rate.
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The New Orders Index increased 2.8 percentage points from September to 52.4 percent, indicating a return to growth after three months of contraction. The Prices Index dropped 15 percentage points to 41 percent.
Inventories decreased to 46.7 percent, which is 5.3 percentage points below the September reading of 52 percent.
Comments from respondents were mixed, indicating positive relief from raw materials pricing and continuing strength in a few industries, but more concern and caution about growth in the uncertain economy.
Of the 18 manufacturing industries, eight are reporting growth in October, in the following order: Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Paper Products; and Machinery. The six industries reporting contraction in October – listed in order – are: Plastics & Rubber Products; Chemical Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing.
More details can be found at www.ism.ws.
