Manufacturing Expands Again in October
Jump in ISM index driven by production and employment.
Manufacturing expanded in October for the third consecutive month, according to the latest Manufacturing ISM Report on Business.
The rate of growth is the highest since April 2006 when the PMI registered 56%. The jump in the index was driven by production and employment, with both registering significant gains. Production appears to be benefiting from the continuing strength in new orders, while the improvement in employment is due to some callbacks and opportunities for temporary workers.
Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode, the Institute for Supply Management said.
In October, 13 of the 18 manufacturing industries reported growth. The industries – listed in order – are: Petroleum & Coal Products; Apparel, Leather & Allied Products; Furniture & Related Products; Chemical Products; Computer & Electronic Products; Transportation Equipment; Plastics & Rubber Products; Machinery; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Fabricated Metal Products; Electrical Equipment, Appliances & Components; and Paper Products.
The three industries reporting contraction in October are: Nonmetallic Mineral Products; Primary Metals; and Wood Products.
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