Manufacturing Expands Again in October

Tempe, AZ, Nov. 1, 2010 -- Economic activity in the manufacturing sector expanded in October for the 15th consecutive month, and the overall economy grew for the 18th consecutive month, according to the Institute for Supply Management.

The manufacturing sector grew during October, with both new orders and production making significant gains. Since hitting a peak in April, the trend for manufacturing has been toward slower growth.

However, this month's report signals a continuation of the recovery that began 15 months ago, ISM said, and its strength raises expectations for growth in the balance of the quarter.

Of the 18 manufacturing industries, 14 are reporting growth in October. The two industries reporting contraction were Nonmetallic Mineral Products and Furniture and Related Products.

The PMI registered 56.9 percent, an increase of 2.5 percentage points when compared to September's reading of 54.4 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.