US manufacturing strengthens in October, input prices stay high
SPY•The ISM manufacturing PMI rose to 55.5 in October from 54.5 in September, while the prices-paid index eased to 75.2 but remained elevated. Supplier deliveries slowed for an 11th straight month.
1. Factory activity picks up
The ISM manufacturing PMI increased to 55.5 in October from 54.5 in September, above economists’ forecast that it would remain unchanged. The production measure rose 2.3 points to 59, its highest reading since November 2021, and 12 industries reported growth.
2. Costs and delays persist
The prices-paid index eased to 75.2 from 77.9 but remained high, with manufacturers reporting higher prices for products including aluminum, copper, diesel fuel and electronic components. Supplier deliveries slowed for an 11th consecutive month, and aluminum, copper, electrical and electronic components, and memory chips remained in short supply.
3. Business sentiment weakens
Despite stronger activity, 66% of survey respondents’ comments were negative, with pricing volatility, longer lead times, tariffs and the war among the concerns cited. The employment measure edged down to 52.4 from 52.7, while new orders rose to 55.5 from 55.3.
