The Institute for Supply ManagementTM reported Monday that the US manufacturing sector grew in October for the third consecutive month.
The ISM's index of national factory activity, the Purchasing Managers' Index (PMI) rose to 55.7 in October from 52.6 percent in September, according to a report issued by the ISM on Monday. The October reading was the highest since April 2006, when the index hit 56.0 percent. The index has remained above the 50 level, which indicates expansion, since August.
The report was issued Monday by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply ManagementTM Manufacturing Business Survey Committee. Mr. Ore commented, "The jump in the index was driven by production and employment, with both registering significant gains. Production appears to be benefiting from the continuing strength in new orders, while the improvement in employment is due to some callbacks and opportunities for temporary workers. Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode."
The report also stated that the overall US economy grew in October for the sixth consecutive month. Further details of the report are as below.
MANUFACTURING AT A GLANCE | ||||||
| Series | Series | Percentage |
| Rate |
|
PMI | 55.7 | 52.6 | +3.1 | Growing | Faster | 3 |
New Orders | 58.5 | 60.8 | -2.3 | Growing | Slower | 4 |
63.3 | 55.7 | +7.6 | Growing | Faster | 5 | |
Employment | 53.1 | 46.2 | +6.9 | Growing | From Contracting | 1 |
Supplier Deliveries | 56.9 | 58.0 | -1.1 | Slowing | Slower | 5 |
Inventories | 46.9 | 42.5 | +4.4 | Contracting | Slower | 42 |
Customers' Inventories | 38.5 | 39.0 | -0.5 | Too Low | Faster | 7 |
Prices | 65.0 | 63.5 | +1.5 | Increasing | Faster | 4 |
Backlog of Orders | 53.5 | 53.5 | 0.0 | Growing | Same | 3 |
Exports | 55.5 | 55.0 | +0.5 | Growing | Faster | 4 |
Imports | 51.0 | 52.0 | -1.0 | Growing | Slower | 2 |
OVERALL ECONOMY | Growing | Faster | 6 | |||
Manufacturing Sector | Growing | Faster | 3 | |||
*Number of months moving in current direction.