Sections: Economy

Manufacturing ISM Report on Business Expands Less than Expected

The Institute for Supply Management’s Manufacturing Report On Business Survey. (Photo: REUTERS)

The Manufacturing ISM Report On Business showed the sector expanded in October, albeit by a slower pace than the median forecast had expected. The Institute for Supply Management (ISM) on Tuesday said its manufacturing index rose to 51.9 in October from 51.5 in September. A reading above 50 indicates that factory activity is growing, while a reading under 50 signals contraction.

The new orders index declined, but production and employment both rose and offset the results.

Of the 18 manufacturing industries, 10 are reporting growth in October. These industries reported in the following order:

Textile Mills; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Computer & Electronic Products; Furniture & Related Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; and Chemical Products. The eight industries reporting contraction in October — listed in order — are: Wood Products; Apparel, Leather & Allied Products; Primary Metals; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Fabricated Metal Products; and Machinery.

MANUFACTURING AT A GLANCE October 2016
Index	Series Index Oct	Series Index Sep	Percentage Point Change	Direction	Rate of Change	Trend* (Months)
PMI^®	51.9	51.5	+0.4	Growing	Faster	2
New Orders	52.1	55.1	-3.0	Growing	Slower	2
Production	54.6	52.8	+1.8	Growing	Faster	2
Employment	52.9	49.7	+3.2	Growing	From Contracting	1
Supplier Deliveries	52.2	50.3	+1.9	Slowing	Faster	6
Inventories	47.5	49.5	-2.0	Contracting	Faster	16
Customers’ Inventories	49.5	53.0	-3.5	Too Low	From Too High	1
Prices	54.5	53.0	+1.5	Increasing	Faster	8
Backlog of Orders	45.5	49.5	-4.0	Contracting	Faster	4
New Export Orders	52.5	52.0	+0.5	Growing	Faster	8
Imports	52.0	49.0	+3.0	Growing	From Contracting	1
OVERALL ECONOMY				Growing	Faster	89
Manufacturing Sector				Growing	Faster	2

Manufacturing ISM^® Report On Business^® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.