The latest manufacturing report from the Institute for Supply Management has shown the 17th consecutive month of growth, along with another month of expansion for the US economy overall, marking the 65th consecutive month this has happened. In particular 17 of the 18 manufacturing industries reported growth in October. Only Petroleum & Coal Product reported contraction.
The growth was not only expansive across the individual manufacturing industries, but also across the indices used by the ISM within the report. In fact the overall PMI matched a twelve month high in October reporting a 2.4 percentage jump from the month of September. Of the 11 indices used within the report only Customers’ Inventories was reported as too low, but even that had a positive jump of 3.5 percent from the September report. The feeling that customers are carrying too little inventory is nothing new however, since the index has been reported as too low for the last 35 months.
Overall the outlook seems to be good for manufacturers heading into the holiday season, as orders are exceeding seasonal forecasts, and production volumes are increasing to match new orders.