Economic activity in the manufacturing sector expanded in October for the fifth consecutive month, and the overall economy grew for the 53rd consecutive month, according to the latest Manufacturing ISM Report On Business.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management Manufacturing business survey committee. The PMI registered 56.4 percent, an increase of 0.2 percentage point from September's reading of 56.2 percent. The PMI has increased progressively each month since June, with October's reading reflecting the highest PMI in 2013.
The New Orders Index increased slightly in October by 0.1 percentage point to 60.6 percent, while the Production Index decreased by 1.8 percentage points to 60.8 percent. Both the New Orders and Production Indexes have registered above 60 percent for three consecutive months.
The Employment Index registered 53.2 percent, a decrease of 2.2 percentage points compared to September's reading of 55.4 percent. The panel's comments are generally positive about the current business climate; however, there are mixed responses on whether the government shutdown and potential default have had any effect on October's results.
Of the 18 manufacturing industries, 14 are reporting growth in October in the following order: textile mills; food, beverage & tobacco products; furniture & related products; printing & related support activities; electrical equipment, appliances & components; computer & electronic products; transportation equipment; petroleum & coal products; wood products; plastics & rubber products; nonmetallic mineral products; machinery; paper products; and fabricated metal products. The four industries reporting contraction in October are: apparel, leather & allied products; primary metals; chemical products; and miscellaneous manufacturing.
