Purchasing Managers' Index Declined to 47.2% in October

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Purchasing Managers' Index Declined to 47.2% in October

Tempe, AZ, November 1, 2024-The Manufacturing Purchasing Managers’ Index (PMI) registered 46.5% in October, 0.7 percentage point lower compared to the 47.2% recorded in September, say the nation's supply executives in the latest Manufacturing ISM Report On Business. This is the lowest Manufacturing PMI reading in 2024. 

The overall economy continued in expansion for the 54th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index remained in contraction territory, registering 47.1%, one percentage point higher than the 46.1% recorded in September. The October reading of the Production Index (46.2%) is 3.6 percentage points lower than September’s figure of 49.8%. The Prices Index returned to expansion (or ‘increasing’) territory, registering 54.8%, up 6.5 percentage points compared to the reading of 48.3 percent in September. The Backlog of Orders Index registered 42.3%, down 1.8 percentage points compared to the 44.1% recorded in September. The Employment Index registered 44.4%, up 0.5 percentage point from September’s figure of 43.9%.

The Supplier Deliveries Index indicated slowing deliveries, registering 52%, 0.2 percentage point lower than the 52.2% recorded in September. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.) 

The Inventories Index registered 42.6%, down 1.3 percentage points compared to September’s reading of 43.9%.

The New Export Orders Index reading of 45.5% is 0.2 percentage point higher than the 45.3% registered in September. 

The Imports Index remained in contraction territory in October, registering 48.3%, the same reading as reported in September.

The five manufacturing industries reporting growth in October are apparel, leather & allied products; food, beverage & tobacco products; petroleum & coal products; computer & electronic products; and miscellaneous manufacturing. The 11 industries reporting contraction in October-in the following order-are textile mills; printing & related support activities; transportation equipment; chemical products; electrical equipment, appliances & components; machinery; primary metals; nonmetallic mineral products; plastics & rubber products; fabricated metal products; and paper products.