ISM Manufacturing Index (PMI) Points to Continued Strength in October

The Institute for Supply Management (ISM) manufacturing index (PMI) remained at elevated levels in October as 16 out of 18 industries reported continued growth. The PMI came in at 58.7%, slightly lower than the 59.5% median forecast but still extraordinarily strong.

New orders, at 63.4, only fell by 1.2 and remain a strong positive in the closely-watched manufacturing report. The Production Index came in at a strong 61% and the Employment Index at 59.8%, a decline of just 0.5% from the September reading of 60.3%.

The Supplier Deliveries Index came in at 61.4%, down from the September reading of 64.4%. The Inventories Index registered at 48% and the Prices Index at 68.5 percent, the latter indicating higher raw materials prices for the 20th consecutive month.

“Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all continuing to grow in October, supplier deliveries continuing to slow (improving) and inventories contracting during the period,” said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee. “Prices continue to remain under pressure. The Customers’ Inventories Index remains at low levels.”