Purchasing Managers’ Index Recorded Decline in October
Tempe, Arizona, November 1, 2018--The October Purchasing Managers’ Index (PMI) registered 57.7%, a decrease of 2.1 percentage points from the September reading of 59.8%, according to the Institute of Supply Management Manufacturing ISM Report On Business.
The New Orders Index registered 57.4%, a decrease of 4.4 percentage points from the September reading of 61.8%.
The Production Index registered 59.9%, a 4 -percentage point decrease compared to the September reading of 63.9%.
The Employment Index registered 56.8%, a decrease of 2 percentage points from the September reading of 58.8%.
The Supplier Deliveries Index registered 63.8%, a 2.7-percentage point increase from the September reading of 61.1%.
The Inventories Index registered 50.7%, a decrease of 2.6 percentage points from the September reading of 53.3%.
The Prices Index registered 71.6%, a 4.7-percentage point increase from the September reading of 66.9%, indicating higher raw materials prices for the 32nd consecutive month.
Of the 18 manufacturing industries, 13 reported growth in October, in the following order: textile mills; electrical equipment, appliances & components; apparel, leather & allied products; plastics & rubber products; food, beverage & tobacco products; computer & electronic products; furniture & related products; miscellaneous manufacturing; machinery; transportation equipment; printing & related support activities; chemical products; and paper products. The four industries reporting contraction in October are wood products; primary metals; nonmetallic mineral products; and fabricated metal products.
The PMI is compiled and released monthly by the Institute for Supply Management (ISM). It is based on a monthly survey sent to senior executives at more than 400 companies and is based on five major survey areas: new orders, inventory levels, production, supplier deliveries and employment. The ISM weighs each of these survey areas equally.
The headline PMI is a number from 0 to 100. A PMI above 50 represents an expansion when compared with the previous month. A PMI reading under 50 represents a contraction, and a reading at 50 indicates no change.