Manufacturing Sector Growth Slid Back in October

The ISM Manufacturing Index registered 57.7 points in October, down 2.1 percentage points from the previous month, according to the Institute for Supply Management. October’s reading indicates the twenty-sixth consecutive month of expansion in manufacturing, as readings over 50 points denote expansion. Of the eighteen manufacturing industries, thirteen reported growth, while four reported contraction. Nine of the ten index components grew, while the supplier deliveries index slowed.

The Employment Index decreased 2.0 points to 56.8 in October, indicating expansion for the twenty-fifth consecutive month. Eleven industries reported expansion, while two reported a decrease in employment.

The New Orders Index decreased 4.4 points to 57.4 in October, indicating growth for the thirty-fourth consecutive month. Eleven industries reported expansion, while five reported a decrease in new orders.

Export orders decreased 3.8 points to 52.2, indicating growth for the thirty-second consecutive month. Eight industries reported growth while seven reported a decrease in new export orders.

The Inventories Index registered 50.7 points, down 2.6 points from the previous month. Seven industries reported higher inventories, while six reported a decrease.

Read the ISM release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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