“The October PMI® registered 59 percent, an increase of 2.4 percentage points from September’s reading of 56.6 percent, indicating continued expansion in manufacturing. The New Orders Index registered 65.8 percent, an increase of 5.8 percentage points from the 60 percent reading in September, indicating growth in new orders for the 17th consecutive month. The Production Index registered 64.8 percent, 0.2 percentage point above the September reading of 64.6 percent. The Employment Index grew for the 16th consecutive month, registering 55.5 percent, an increase of 0.9 percentage point above the September reading of 54.6 percent. Inventories of raw materials registered 52.5 percent, an increase of 1 percentage point from the September reading of 51.5 percent, indicating growth in inventories for the third consecutive month. Comments from the panel generally cite positive business conditions, with growth in demand and production volumes.”- Bradley J. Holcomb, Institute for Supply Management® (ISM®)
Sixteen of eighteen manufacturing industries reported growth in October.
We were especially pleased to see New Orders up 5.8 points to 65.8.
The October ISM PMI numbers reflected the PMPA’s Business Trends results for September:
“The PMPA Business Trends Index for September increased 2 points (1.7%) from 117 to 119. This is the highest value for
September in the 5 years since the recession’s low of 83. September 2014’s 119 is 7 points, or 6.25% higher than the value for
September 2013. (On PMPA’s recently completed Shop Hourly Wage Survey, we determined that sales had increased 6% year over
year for those shops reporting in both 2013 and 2014.) The Sales Index average, year to date, is 121.9, up 4.9 points from the 2013
calendar year average. Six of the eight months this year have had an index value higher than that of the prior year. “
PMPA member companies continue to report strong sales and increasing lead times as the North American manufacturing economy continues to show its strength.
Now is a great time to be engaged in precision machining as advanced manufacturing continues to grow here in North America.
Graph courtesy Calculated Risk Blog