ISM reported the October Manufacturing PMI dropped to 50.2%, a 0.7 percentage-point drop from September’s PMI of 50.9%. Although results fell in October, anything over 50% represents economic expansion, making October 2022 the 29th consecutive month of growth.
Here is the breakdown of the July PMI:
- New Orders Index: 49.2%, a 2.1 percentage-point increase month-over-month
- Production Index: 52.3%, a 1.7 percentage-point increase month-over-month
- Prices Index: 46.6%, a 5.1 percentage-point decrease month-over-month
- Backlog of Orders Index: 45.3%, a 5.6 percentage-point decrease month-over-month
- Employment Index: 50%, a 1.3 percentage-point increase month-over-month
- Supplier Deliveries Index: 46.8%, a 5.6 percentage-point decrease month-over-month
- Inventories Index: 52.5%, a 3 percentage-point decrease month-over-month
- New Export Orders Index: 46.5%, a 1.3 percentage-point decrease month-over-month
- Imports Index: 50.8%, a 1.8 percentage-point decrease month-over-month
“The U.S. manufacturing sector continues to expand, but at the lowest rate since the coronavirus pandemic recovery began. With panelists reporting softening new order rates over the previous five months, the October index reading reflects companies’ preparing for potential future lower demand,” Timothy R. Fiore, ISM chairman, said.
October saw growth in eight manufacturing industries, including:
- Apparel, Leather & Allied Products
- Nonmetallic Mineral Products
- Petroleum & Coal Products
- Transportation Equipment
- Miscellaneous Manufacturing
- Plastics & Rubber Products
- Electrical Equipment, Appliances & Components
Furniture & Related Products, Wood Products, Paper Products, Textile Mills, Printing & Related Support Activities, Fabricated Metal Products, Chemical Products, Primary Metals, Computer & Electronic Products and Food, Beverage & Tobacco Products all reported a decrease in October compared to September.