US manufacturing picks up in October; input prices stay high
SPY•The ISM manufacturing PMI rose to 55.5 in October from 54.5 in September, above economists’ forecast that it would be unchanged. The prices-paid index eased to 75.2 from 77.9 but remained high.
1. Factory activity rises
The Institute for Supply Management said its manufacturing PMI increased to 55.5 in October from 54.5 in September, while economists had forecast no change. New orders edged up to 55.5 from 55.3, exports rose and factory inventories increased. The PMI has remained above 50 this year, indicating manufacturing growth.
2. Input costs remain elevated
The supplier deliveries index edged up to 59.1 from 59.0, indicating slower deliveries, while the prices-paid index eased to 75.2 from 77.9. Economists had forecast a reading of 77.5 for prices paid. Factory employment continued to grow, but its measure slipped to 52.4 from 52.7.
