US manufacturing expanded for a tenth consecutive month in October, with the purchasing managers index rising to 55.5. Production reached its strongest survey reading since November 2021 and orders continued to grow. A lower prices index still indicated rising input costs, while suppliers took longer to deliver. Employment growth continued at a slightly slower pace.
The US Institute for Supply Management, a supply-management professional association, recorded a tenth consecutive month of manufacturing expansion in October. Its purchasing managers index rose from 54.5 to 55.5. All five headline components stood above 50. The production index climbed from 56.7 to 59.0, its highest reading since November 2021. These indexes summarize businesses’ reported changes in activity.[1], [2]
New orders increased from 55.3 to 55.5. Export orders also improved, from 50.9 to 51.2, while the backlog index eased from 56.4 to 54.6. Employment registered 52.4 after September’s 52.7, maintaining expansion for a fourth month. Twelve industries reported growth; five of the six largest industries expanded. Printing and related support activities, paper products and nonmetallic mineral products contracted.[1]
The prices index fell from 77.9 to 75.2 but continued to signal input-price increases. Supplier deliveries registered 59.1, indicating slower deliveries for an eleventh month; a higher reading here means longer delivery times. Manufacturers’ inventories moved from contraction into expansion, rising from 48.6 to 51.4. Customers’ inventories stayed at 41.6, indicating stocks judged too low. Imports increased from 51.0 to 52.9.[1]
