Manufacturing in U.S. continues expansion

Institute for Supply Management's Purchasing Managers Index registers 56.9 percent for October, the 15th straight month of expansion.

The Institute for Supply Management (ISM, Tempe, Ariz., USA) on Nov. 1 reported that economic activity in the U.S. manufacturing sector expanded in October for the 15th consecutive month, and the overall economy grew for the 18th consecutive month. ISM's Purchasing Managers Index (PMI) registered 56.9 percent, following a August value of 54.4 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

The report was issued by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The manufacturing sector grew during October, with both new orders and production making significant gains. Since hitting a peak in April, the trend for manufacturing has been toward slower growth. 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.” 

12-month ISM Manufacturing Index history (percent):

  • October 2010: 56.9
  • September 2010: 54.4
  • August 2010: 56.3
  • July 2010: 55.5
  • June 2010: 56.2
  • May 2010: 59.7
  • April 2010: 60.4
  • March 2010: 59.6
  • February 2010: 56.5
  • January 2010: 58.4
  • December 2009: 55.9
  • November 2009: 53.6