ISM purchasing managers’ index rises to 55.5 in October

Production index reaches highest reading since November 2021

An Institute for Supply Management survey of manufacturing firms put the U.S. purchasing managers’ index at 55.5 in October, up from 54.5 in September. The Nov. 2 result extended U.S. factory activity’s expansion to a 10th consecutive month.

Readings above 50 indicate sectoral expansion. Analysts polled by The Wall Street Journal expected an October reading of 54.5, below the 55.5 result reported by the institute.

The ISM survey said its October production-index reading was the highest since November 2021.

The new-orders index expanded for a 10th consecutive month after four straight readings in contraction, the survey said.

Prices remained part of the survey’s expansion picture. The prices index registered 75.2 in October, down from 77.9 in September, but remained in expansion.

“Higher prices were reported by 53.1% of respondents in October, down 5.5 percentage points from September’s 58.6%,” said Susan Spence, chair of the ISM.

The survey’s employment index registered 52.4, down slightly from September and still above the 50-point expansion threshold.

Taken together, the October figures showed an expanding manufacturing sector, with the production-index reading at its highest level since November 2021 and the new-orders index expanding. Most surveyed firms reported higher prices, while the employment-index reading eased slightly.