The Institute for Supply Management reported that the Manufacturing Purchasing Managers Index (PMI) was 46.5% in October, 0.7 percentage point lower than September. It was the seventh consecutive month of declines and the lowest numbers in 2024.
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Here’s the breakdown of October PMI:
- New Orders Index: 47.1%, 1 percentage point higher than September.
- Production Index: 46.2%, a 2.6 percentage point decrease month-over-month.
- Prices Index: 54.8%, up 6.5 percentage points over September.
- Backlog of Orders Index: 42.3%, down 1.8 percentage points from September.
- Employment Index: 44.4%, up 0.5 percentage point from last month.
- Supplier Deliveries Index: 52%, 0.2 percentage point lower than September.
- Inventories Index: 42.6%, down 1.3 percentage points from September.
- New Export Orders Index: 45.5%, 0.2 percentage point higher month-over-month.
- Imports Index: 48.3%, the same as September.
“Demand remains subdued, as companies continue to show an unwillingness to invest in capital and inventory due to concerns (for example, inflation resurgence) about federal monetary policy direction in light of the fiscal policies proposed by both major parties. Production execution eased in October, consistent with demand sluggishness. Suppliers continue to have capacity, with lead times improving and some shortages reappearing. Sixty-three percent of manufacturing gross domestic product (GDP) contracted in October, down from 77% in September,” said Timothy R. Fiore, ISM Chairman.
The manufacturing industries reporting growth in October included:
- Apparel, Leather and Allied Products
- Food, Beverage and Tobacco Products
- Petroleum and Coal Products
- Computer and Electronic Products
- Miscellaneous Manufacturing
