October ISM manufacturing PMI reaches 55.5, marking 10 consecutive months of expansion

Raw materials prices rise for 25th straight month

Trucks and trailers are parked at the loading dock of the Sam Miller manufacturing plant in Warren, Ohio, in September. [AFP]
Trucks and trailers are parked at the loading dock of the Sam Miller manufacturing plant in Warren, Ohio, in September. [AFP]

US manufacturing activity solidified its recovery, extending its expansion streak to 10 consecutive months. The production index posted its highest reading in about five years.

The Institute for Supply Management said Monday (local time) that its manufacturing purchasing managers index for October rose 1.0 point from the previous month to 55.5, topping the consensus forecast of 54.5 compiled by Dow Jones. The reading marks 10 consecutive months of expansion since January.

A PMI reading above 50 signals expansion, while a reading below 50 indicates contraction.

US manufacturing had endured 10 consecutive months of contraction last year before shifting into expansion for each of the 10 months this year. The production index was a standout, jumping 2.3 points from the prior month to 59.0 — its highest level since November 2021. The new orders index, a leading indicator of demand, also rose 0.2 point to 55.5, extending its own expansion run to 10 straight months.

The employment index slipped 0.3 point from the prior month to 52.4, but remained above 50 for the fourth consecutive month, suggesting manufacturers continue to add workers in step with rising output.

The prices index, which tracks raw materials costs, fell 2.7 points to 75.2 from the prior month's 77.9, yet still marked its 25th consecutive month of expansion.

ISM said production, new orders and employment all remained in expansion territory, but noted that rising raw materials prices, supply chain disruptions, and uncertainty stemming from tariffs and Middle East tensions continue to weigh on businesses.


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