Manufacturing Index Eases in October

The ISM Manufacturing Index registered 58.7 points in October, down 2.1 percentage points from the previous month, according to the Institute for Supply Management. October’s reading indicates the fourteenth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Last month’s reading was the highest reading since May 2004. Of the eighteen manufacturing industries, sixteen reported growth, while none reported contraction. Eight of the ten index components grew, while the inventories and customers’ inventories indexes both contracted.

The Employment Index declined 0.5 point to 58.3 in October, indicating expansion for the thirteenth consecutive month. Fifteen industries reported expansion, while one reported a decrease in employment.

The New Orders Index decreased 1.2 points to 63.4 in October, indicating growth for the fourteenth consecutive month. Twelve industries reported expansion, while three reported a decrease in employment.

Export orders fell 0.5 point to 56.5, indicating growth for the twentieth consecutive month. Eight industries reported growth while three of the eighteen reported a decrease in new export orders.

The inventories index registered 48 points, down 4.5 points from the previous month. Six industries reported higher inventories, while eleven reported a decrease.

Read the ISM release.

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About Stephen Newton

Stephen Newton is an economic research associate at ABA.