Manufacturing growth accelerated in October as new orders and production surged to push the PMI index up 2.5 points to 56.9 percent, according to the nation's supply executives in a report on business from the Institute for Supply Management.
Economic activity in the manufacturing sector expanded in October for the 15th consecutive month, and the overall economy grew for the 18th consecutive month, say the executives in the latest Manufacturing ISM Report On Business.
The report was issued today by, CPSM, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee.
"Since hitting a peak in April, the trend for manufacturing has been toward slower growth,” said Norbert J. Ore, chair of the ISM survey committee. “However, this month's report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter. Survey respondents note the recovery in autos, computers and exports as key drivers of this growth. Concerns about inventory growth are lessened by the improvement in new orders during October. With 14 of 18 industries reporting growth in October, manufacturing continues to outperform the other sectors of the economy."
The index for new orders surged 7.8 percentage points to 58.9 percent in the largest improvement since January 2009 and the 16th consecutive month of growth.
ISM's production index registered 62.7 percent in October, an increase of 6.2 percentage points from September and the largest month-over-month improvement since January 2010. This is the 17th consecutive month the production index has registered above 50 percent.
ISM's employment index moved up 1.2 points to 57.7 percent in the 11th consecutive month of growth in manufacturing employment.
The delivery performance of suppliers to manufacturing organizations was slower in October as the supplier deliveries index registered 51.2 percent in the 17th consecutive month above 50 percent. A reading above 50 percent indicates slower deliveries. The index fell 1.1 point from September to October.
Manufacturers' inventories grew in October as the inventories index registered 53.9 percent, down 1.7 points from September. An inventories index greater than 42.6 percent, over time, indicates expansion.
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