US Factory Activity Rises More Than Expected: ISM


The Institute for Supply Management’s Manufacturing PMI rose to 51.9 in October 2016 from 51.5 in September, above market expectations of 51.7. It was the highest reading in three months, as employment rebounded sharply and output grew further, while new orders expanded at a slower pace.

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.

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.

Of the 18 manufacturing industries, 10 are reporting growth in October in the following order: Textile Mills; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Computer & Electronic Products; Furniture & Related Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; and Chemical Products. The eight industries reporting contraction in October — listed in order — are: Wood Products; Apparel, Leather & Allied Products; Primary Metals; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Fabricated Metal Products; and Machinery.

US Factory Activity Rises More Than Expected: ISM


ISM | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/1/2016 2:11:53 PM