Monday, November 02, 2020

ISM Manufacturing index Increased to 59.3 in October

by Calculated Risk on 11/02/2020 10:05:00 AM

The ISM manufacturing index indicated expansion in October. The PMI was at 59.3% in October, up from 55.4% in September. The employment index was at 53.2%, up from 49.6% last month, and the new orders index was at 67.9%, up from 60.2%.

From ISM: Manufacturing PMI® at 59.3%; October 2020 Manufacturing ISM® Report On Business®

conomic activity in the manufacturing sector grew in October, with the overall economy notching a sixth consecutive month of growth, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee.

"The October Manufacturing PMI® registered 59.3 percent, up 3.9 percentage points from the September reading of 55.4 percent and the highest since September 2018 (59.3 percent). This figure indicates expansion in the overall economy for the sixth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth. The New Orders Index registered 67.9 percent, an increase of 7.7 percentage points from the September reading of 60.2 percent. The Production Index registered 63 percent, an increase of 2 percentage points compared to the September reading of 61 percent. The Backlog of Orders Index registered 55.7 percent, 0.5 percentage point higher compared to the September reading of 55.2 percent. The Employment Index registered 53.2 percent, an increase of 3.6 percentage points from the September reading of 49.6 percent. The Supplier Deliveries Index registered 60.5 percent, up 1.5 percentage points from the September figure of 59 percent. The Inventories Index registered 51.9 percent; 4.8 percentage points higher than the September reading of 47.1 percent. The Prices Index registered 65.5 percent, up 2.7 percentage points compared to the September reading of 62.8 percent. The New Export Orders Index registered 55.7 percent; an increase of 1.4 percentage points compared to the September reading of 54.3 percent. The Imports Index registered 58.1 percent, a 4.1-percentage point increase from the September reading of 54 percent.
emphasis added
ISM PMIClick on graph for larger image.

Here is a long term graph of the ISM manufacturing index.

This was above expectations and the employment index moved above 50.

This suggests manufacturing expanded at a faster pace in October than in September.