by Bill McBride on 11/01/2013 10:00:00 AM
Friday, November 01, 2013
The ISM manufacturing index indicated faster expansion in October. The PMI was at 56.4% in October, up from 56.2% in September. The employment index was at 53.2%, down from 55.4%, and the new orders index was at 60.6%, up from 60.5% in September.
From the Institute for Supply Management: October 2013 Manufacturing ISM Report On Business®
Economic activity in the manufacturing sector expanded in October for the fifth consecutive month, and the overall economy grew for the 53rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.Click on graph for larger image.
The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI™ registered 56.4 percent, an increase of 0.2 percentage point from September's reading of 56.2 percent. The PMI™ has increased progressively each month since June, with October's reading reflecting the highest PMI™ in 2013. The New Orders Index increased slightly in October by 0.1 percentage point to 60.6 percent, while the Production Index decreased by 1.8 percentage points to 60.8 percent. Both the New Orders and Production Indexes have registered above 60 percent for three consecutive months. The Employment Index registered 53.2 percent, a decrease of 2.2 percentage points compared to September's reading of 55.4 percent. The panel's comments are generally positive about the current business climate; however, there are mixed responses on whether the government shutdown and potential default have had any effect on October's results."
Here is a long term graph of the ISM manufacturing index.
This was above expectations of 55.0% and suggests manufacturing expanded at a faster pace in October.