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Manufacturing Sector Expanded in October | ABA Banking Journal

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The ISM Manufacturing Index registered 59.3 points in October, an increase of 3.9 percentage points from the September reading of 55.4 points, according to the Institute for Supply Management. This indicates expansion in the overall economy for the six month in a row. Comments from respondents were optimistic.

Fifteen of the 18 manufacturing industries reported growth: 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 that reported contraction in October were Textile Mills; and Printing & Related Support Activities.

The Employment Index registered 53.2%, an increase of 3.6 percentage points from the September reading of 49.6%. This is the first month of expansion after 14th consecutive months of employment contraction.

The New Orders Index registered 67.9% in October, an increase of 7.7 percentage points from September’s reading of 60.2%. This is the fifth month of growth for the index.

The New Export Orders Index registered 55.7%, up 1.4 percentage point from September.

The Inventories Index registered 51.9% in October, an increase of 4.8 percentage points from the September reading of 47.1%. Inventories grew after three months of contraction.

Read the ISM release.