Courtesy of Mish.
The October 2016 ISM® Manufacturing Report shows growth was nearly flat for the month at 51.9 vs. the September reading of 51.5.
Markit’s US Manufacturing PMI was 53.5, the best reading in a year.
Both reports showed input price pressures. Markit noted the biggest rise in input prices in five years.
ISM Manufacturing Numbers
| ISM Manufacturing October 2016 | ||||||
|---|---|---|---|---|---|---|
| Index | Oct | Sep | PP Change | Direction | Rate of Change | Trend in Months |
| PMI® | 51.9 | 51.5 | 0.4 | Growing | Faster | 2 |
| New Orders | 52.1 | 55.5 | -3.4 | Growing | Slower | 2 |
| Production | 54.6 | 52.8 | 1.8 | Growing | Faster | 2 |
| Employment | 52.9 | 49.7 | 3.2 | Growing | From Contracting | 1 |
| Supplier Deliveries | 52.2 | 50.3 | 1.9 | Slowing | Faster | 6 |
| Inventories | 47.5 | 49.5 | -2.0 | Contracting | Faster | 16 |
| Customers’ Inventories | 49.5 | 53.0 | -3.5 | Too low | From Too High | 1 |
| Prices | 54.5 | 53.0 | 1.5 | Increasing | Faster | 8 |
| Backlog of Orders | 45.5 | 49.5 | -4.0 | Contracting | Faster | 4 |
| New Export Orders | 52.5 | 52.0 | 0.5 | Growing | Faster | 8 |
| Imports | 52.0 | 49.0 | 3.0 | Growing | From Contracting | 1 |
Markit US Manufacturing PMI
Key Findings
- Gains in output and new orders underpin sharp improvement in operating conditions
- Jobs added again, albeit at modest pace
- Cost inflation rises to highest level for two years
Comments From Chris Williamson, Markit’s Chief Business Economist
