TEMPE, AZ – Economic activity in the manufacturing sector expanded in October for the 27th consecutive month, according to the Institute for Supply Management.
 
The PMI was down 0.8 percentage point to 50.8%, while new orders were up 2.8 percentage points to 52.4%. Production dropped 1.1 points to 50.1%, and inventories fell 5.3 percentage points to 46.7%. Customer inventories were 43.5%, down 5.5 percentage points. Backlogs were up 6 points to 47.5%.
 
“The PMI registered 50.8%, a decrease of 0.8 percentage point from September's reading of 51.6%, indicating expansion in the manufacturing sector for the 27th consecutive month. The New Orders Index increased 2.8 percentage points from September to 52.4%, indicating a return to growth after three months of contraction. The Prices Index, at 41%, dropped 15 percentage points, and is below the 50% mark for the first time since May 2009 when it registered 43.5%. Inventories decreased to 46.7%, which is 5.3 percentage points below the September reading of 52%. Comments from respondents are mixed, indicating positive relief from raw materials pricing and continuing strength in a few industries, but there is also more concern and caution about growth in this uncertain economy,” said ISM chair Bradley J. Holcomb.
 
The overall economy grew for the 29th consecutive month.

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