October PMI Declined but Remained Positive in October

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October PMI Declined but Remained Positive in October

Tempe, AZ, November 1, 2022- The October Manufacturing Purchasing Managers Index (PMI) registered 50.2%, 0.7 percentage point lower than the 50.9% recorded in September, according to the latest Manufacturing ISM Report On Business. This figure indicates expansion in the overall economy for the 29th month in a row after contraction in April and May 2020. 

The Manufacturing PMI figure is the lowest since May 2020, when it registered 43.5%. 

The New Orders Index remained in contraction territory at 49.2%, 2.1 percentage points higher than the 47.1% recorded in September. 

The Production Index reading of 52.3% is a 1.7-percentage point increase compared to September’s figure of 50.6%. 

The Prices Index registered 46.6%, down 5.1 percentage points compared to the September figure of 51.7%. This is the index’s lowest reading since May 2020 (40.8%).

The Backlog of Orders Index registered 45.3%, 5.6 percentage points lower than the September reading of 50.9%.

 After one month of contraction, the Employment Index was unchanged at 50%, 1.3 percentage points higher than the 48.7% recorded in September. 

The Supplier Deliveries Index reading of 46.8% is 5.6 percentage points lower than the September figure of 52.4%. This reading, the index’s lowest since March 2009 (43.2%), ended a streak of 79 months in ‘slowing’ territory. 

The Inventories Index registered 52.5%, 3 percentage points lower than the September reading of 55.5%.

The New Export Orders Index reading of 46.5% is down 1.3 percentage points compared to September’s figure of 47.8%. This is the index’s lowest figure since May 2020, when it registered 39.5%. The Imports Index remained in expansion territory at 50.8%, 1.8 percentage points below the September reading of 52.6%.

Eight manufacturing industries reported growth in October, in the following order: apparel, leather & allied products; nonmetallic mineral products; machinery; petroleum & coal products; transportation equipment; miscellaneous manufacturing; plastics & rubber products; and electrical equipment, appliances & components. 

The ten industries reporting contraction in October compared to September, in the following order are furniture & related products; wood products; paper products; textile mills; printing & related support activities; fabricated metal products; chemical products; primary metals; computer & electronic products; and food, beverage & tobacco products.