PMI rises 2.5 points; manufacturing sector grows for 15th consecutive month
The Institute for Supply Management’s factory index increased to 56.9 last month, the highest since May, from 54.4, the Tempe, Arizona-based group said today. Readings greater than 50 signal the sector is expanding.
Norbert J. Ore, CPSM, C.P.M., chair of ISM's Manufacturing's Business Survey Committee said the report increases expectations for the quarter.
“The manufacturing sector grew during October, with both new orders and production making significant gains," said Ore. "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."
Meanwhile, other reports showed that manufacturing in China expanded in October at the fastest pace in six months, while U.K. factory growth unexpectedly accelerated as hiring and export orders improved.