Economy
November 1, 2016
ISM Manufacturing PMI Improves in October
Written by Sandy Williams
Economic activity in the manufacturing sector expanded at a faster rate in October, according to the latest Manufacturing ISM Report on Business. The PMI index, which covers manufacturing activity for the entire United States, registered 51.9, a 0.4 increase from September. A reading above 50 indicates expansion of the manufacturing economy and below 50 indicates contraction. The average reading for the past 12 months was 50.8 with a high of 53.2 in June and a low of 48.0 in Dec. 2015.
The new orders index registered 52.1, down 3 percentage points from September. Production increased 1.8 percentage points to 54.6. The backlog index decreased to 45.5 for the fourth consecutive month of contraction. The supplier deliveries index registered 52.2 indicating slower deliveries.
