October 2017 Manufacturing ISM Report On Business Says New Orders, Production, Backlog of Orders, and Employment Continue Growing

The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. 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.

Manufacturing expanded in October as the PMI registered 58.7 percent, a decrease of 2.1 percentage points from the September reading of 60.8 percent. This indicates growth in manufacturing for the 14th consecutive month and continues expansion consistent with pre-hurricane levels.

ISM's New Orders Index registered 63.4 percent in October, which is a decrease of 1.2 percentage points when compared to the 64.6 percent reported for September, indicating growth in new orders for the 14th consecutive month.

ISM's Production Index registered 61 percent in October, which is a decrease of 1.2 percentage points when compared to the 62.2 percent reported for September, indicating growth in production for the 14th consecutive month.

ISM's Employment Index registered 59.8 percent in October, a decrease of 0.5 percentage point when compared to the September reading of 60.3 percent. This indicates growth in employment in October for the 13th consecutive month.

The delivery performance of suppliers to manufacturing organizations was slower in October, as the Supplier Deliveries Index registered 61.4 percent. This is 3 percentage points lower than the 64.4 percent reported for September. This is the 18th straight month of slowing supplier deliveries, and reflects delivery performance improvement over the prior month, which was impacted by weather conditions.

The Inventories Index registered 48 percent in October, which is a decrease of 4.5 percentage points when compared to the 52.5 percent reported for September, indicating raw materials inventories contracted in October compared to September.

ISM's Backlog of Orders Index registered 55 percent in October, a decrease of 3 percentage points from the 58 percent reported for September, indicating growth in order backlogs for the ninth consecutive month but at a slower rate.

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.