PMI Shows U.S. Manufacturing Expansion Slowed In October

After increasing 2 percentage points in September to its highest level since May 2004, the October PMI fell 2.1 points, indicating slower expansion for the U.S. manufacturing economy last month.

Id 33060 Manufacturing 2

TEMPE, AZ — Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 101st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued Wednesday by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee: 

  • The October PMI registered 58.7 percent, a decrease of 2.1 percentage points from the September reading of 60.8 percent 
  • The New Orders Index registered 63.4 percent, a decrease of 1.2 percentage points from the September reading of 64.6 percent
  • The Production Index registered 61 percent, a 1.2 percentage point decrease compared to the September reading of 62.2 percent
  • The Employment Index registered 59.8 percent, a decrease of 0.5 percentage point from the September reading of 60.3 percent
  • The Supplier Deliveries Index registered 61.4 percent, a 3 percentage point decrease from the September reading of 64.4 percent
  • The Inventories Index registered 48 percent, a decrease of 4.5 percentage points from the September reading of 52.5 percent
  • The Prices Index registered 68.5 percent in October, a 3 percentage point decrease from the September level of 71.5, indicating higher raw materials prices for the 20th consecutive month.

Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all continuing to grow in October, supplier deliveries continuing to slow (improving) and inventories contracting during the period. Prices continue to remain under pressure. The Customers’ Inventories Index remains at low levels.

Of the 18 manufacturing industries, 16 reported growth in October, in the following order: Paper Products; Nonmetallic Mineral Products; Machinery; Transportation Equipment; Wood Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Plastics & Rubber Products; Textile Mills; Chemical Products; Computer & Electronic Products; Fabricated Metal Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; and Primary Metals. Two industries reported the same level of activity as September.

MANUFACTURING AT A GLANCE
October 2017


Index
Series
Index
Oct
Series
Index
Sep
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 58.7 60.8 -2.1 Growing Slower 14
New Orders 63.4 64.6 -1.2 Growing Slower 14
Production 61.0 62.2 -1.2 Growing Slower 14
Employment 59.8 60.3 -0.5 Growing Slower 13
Supplier Deliveries 61.4 64.4 -3.0 Slowing Slower 18
Inventories 48.0 52.5 -4.5 Contracting From Growing 1
Customers' Inventories 43.5 42.0 +1.5 Too Low Slower 4
Prices 68.5 71.5 -3.0 Increasing Slower 20
Backlog of Orders 55.0 58.0 -3.0 Growing Slower 9
New Export Orders 56.5 57.0 -0.5 Growing Slower 20
Imports 54.0 54.0 0.0 Growing Same 9
OVERALL ECONOMY Growing Slower 101
Manufacturing Sector Growing Slower 14

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.

Last 12 Months
Month PMI   Month PMI
Oct 2017  58.7   Apr 2017  54.8
Sep 2017  60.8   Mar 2017  57.2
Aug 2017  58.8   Feb 2017  57.7
Jul 2017  56.3   Jan 2017  56.0
Jun 2017  57.8   Dec 2016  54.5
May 2017  54.9   Nov 2016  53.5
Average for 2017 – 57.3
Average for 12 months – 56.8
High – 60.8
Low – 53.5

source: tradingeconomics.com
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