Economic activity in the manufacturing sector expanded in October for the third consecutive month, and the overall economy grew for the sixth consecutive month, according to the Manufacturing ISM Report On Business.
Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee, said "The manufacturing sector grew for the third consecutive month in October, and the rate of growth is the highest since April 2006 when the PMI registered 56 percent. The jump in the index was driven by production and employment, with both registering significant gains. Production appears to be benefiting from the continuing strength in new orders, while the improvement in employment is due to some callbacks and opportunities for temporary workers. Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode."
In October, 13 of the 18 manufacturing industries reported growth, incluing Electrical Equipment, Appliances & Components, Petroleum & Coal Products; Apparel, Leather & Allied Products; Furniture & Related Products; Chemical Products; Computer & Electronic Products; Transportation Equipment; Plastics & Rubber Products; Machinery; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Fabricated Metal Products and Paper Products. The three industries reporting contraction in October are: Nonmetallic Mineral Products; Primary Metals; and Wood Products.
ISM said that the recovery in manufacturing strengthened in October as the PMI registered 55.7%, which is 3.1 percentage points higher than the 52.6% reported in September, and the highest reading for the index since April 2006 (56%). A reading above 50% indicates that the manufacturing economy is generally expanding; below 50% indicates that it is generally contracting.
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