by Bill McBride on 11/01/2016 10:04:00 AM
Tuesday, November 01, 2016
The ISM manufacturing index indicated expansion in October. The PMI was at 51.9% in October, up from 51.5% in September. The employment index was at 52.9%, up from 49.7% last month, and the new orders index was at 52.1%, down from 55.1%.
From the Institute for Supply Management: October 2016 Manufacturing ISM® Report On Business®
Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 89th 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® (ISM®) Manufacturing Business Survey Committee. "The October PMI® registered 51.9 percent, an increase of 0.4 percentage point from the September reading of 51.5 percent. The New Orders Index registered 52.1 percent, a decrease of 3 percentage points from the September reading of 55.1 percent. The Production Index registered 54.6 percent, 1.8 percentage points higher than the September reading of 52.8 percent. The Employment Index registered 52.9 percent, an increase of 3.2 percentage points from the September reading of 49.7 percent. Inventories of raw materials registered 47.5 percent, a decrease of 2 percentage points from the September reading of 49.5 percent. The Prices Index registered 54.5 percent in October, an increase of 1.5 percentage points from the September reading of 53 percent, indicating higher raw materials prices for the eighth consecutive month. Comments from the panel are largely positive citing a favorable economy and steady sales, with some exceptions."
Here is a long term graph of the ISM manufacturing index.
This was slightly above expectations of 51.6%, and suggests manufacturing expanded in October.