ISM: U.S. manufacturing expands faster in October as prices continue rising

U.S. manufacturing activity expanded at a faster pace in October, according to the Institute for Supply Management's survey of supply executives, released on November 2. Its Manufacturing PMI rose to 55.5 from 54.5 in September, marking a tenth consecutive month of expansion. A reading above 50 indicates that the sector is generally expanding.

The Production Index rose to 59 from 56.7, its highest reading since November 2021. The New Orders Index edged up to 55.5 from 55.3. Twelve manufacturing industries reported growth, while three reported contraction.

The Prices Index fell to 75.2 from 77.9 but remained in territory indicating increasing prices. The Employment Index slipped to 52.4 from 52.7, indicating continued expansion at a slower pace. Supplier deliveries also slowed, with that index rising to 59.1 from 59.

ISM said pricing volatility, longer lead times, tariffs and the Iran war were among concerns mentioned in respondents' negative comments. The report is based on a survey of manufacturing supply executives using information collected within their organizations.