Economic activity in the manufacturing sector expanded in October for the fifteenth consecutive month, and the overall economy grew for the eighteenth consecutive month, according to the nation's supply executives in the latest Manufacturing ISM Report On Business.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The manufacturing sector grew during October, with both new orders and production making significant gains. Since hitting a peak in April, the trend for manufacturing has been toward slower growth. However, this month's report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter. Survey respondents note the recovery in autos, computers and exports as key drivers of this growth. Concerns about inventory growth are lessened by the improvement in new orders during October. With 14 of 18 industries reporting growth in October, manufacturing continues to outperform the other sectors of the economy."
Performance by industry
Of the 18 manufacturing industries, 14 are reporting growth in October, in the following order: Apparel, Leather and Allied Products; Primary Metals; Petroleum and Coal Products; Machinery; Electrical Equipment, Appliances and Components; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; Printing and Related Support Activities; Transportation Equipment; Computer and Electronic Products; Food, Beverage and Tobacco Products; Plastics and Rubber Products; and Chemical Products. The two industries reporting contraction in October are: Nonmetallic Mineral Products; and Furniture and Related Products.
|MANUFACTURING AT A GLANCE
|Customers' Inventories||44.0||42.5||+1.5||Too Low||Slower||19|
|Backlog of Orders||46.0||46.5||-0.5||Contracting||Faster||2|
*Number of months moving in current direction.
Commodities reported up/down in price and in short supply
Commodities up in price
Aluminum (2); Aluminum Extrusions; Caustic Soda (3); Chemicals; Copper (3); Corn (2); Corrugated Containers (8); Lubricants (2); Polyethylene (2); Polypropylene (2); Silver; Stainless Steel Sheets (2); Steel (2); Sulfuric Acid; and Transportation.
Commodities down in price
No commodities are reported down in price.
Commodities in short supply
Cocoa Powder (2); and Electronic Components (2).