The Institute for Supply Management’s Manufacturing Report On Business Survey. (Photo: REUTERS)
The Manufacturing ISM Report On Business showed the sector expanded in October, albeit by a slower pace than the median forecast had expected. The Institute for Supply Management (ISM) on Tuesday said its manufacturing index rose to 51.9 in October from 51.5 in September. A reading above 50 indicates that factory activity is growing, while a reading under 50 signals contraction.
The new orders index declined, but production and employment both rose and offset the results.
Of the 18 manufacturing industries, 10 are reporting growth in October. These industries reported 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.
| MANUFACTURING AT A GLANCE October 2016 |
||||||
|---|---|---|---|---|---|---|
| Index | Series Index Oct |
Series Index Sep |
Percentage Point Change |
Direction | Rate of Change |
Trend* (Months) |
| PMI® | 51.9 | 51.5 | +0.4 | Growing | Faster | 2 |
| New Orders | 52.1 | 55.1 | -3.0 | Growing | Slower | 2 |
| Production | 54.6 | 52.8 | +1.8 | Growing | Faster | 2 |
| Employment | 52.9 | 49.7 | +3.2 | Growing | From Contracting | 1 |
| Supplier Deliveries | 52.2 | 50.3 | +1.9 | Slowing | Faster | 6 |
| Inventories | 47.5 | 49.5 | -2.0 | Contracting | Faster | 16 |
| Customers’ Inventories | 49.5 | 53.0 | -3.5 | Too Low | From Too High | 1 |
| Prices | 54.5 | 53.0 | +1.5 | Increasing | Faster | 8 |
| Backlog of Orders | 45.5 | 49.5 | -4.0 | Contracting | Faster | 4 |
| New Export Orders | 52.5 | 52.0 | +0.5 | Growing | Faster | 8 |
| Imports | 52.0 | 49.0 | +3.0 | Growing | From Contracting | 1 |
| OVERALL ECONOMY | Growing | Faster | 89 | |||
| Manufacturing Sector | Growing | Faster | 2 | |||
Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.
Eli Kentner / November 1, 2016
@PPDNews how does PA look?
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Eli Kentner / November 1, 2016
@PPDNews or MI/WI
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