US ISM Manufacturing Index rose to 59.3 in October, up from 55.4, way better than expectation of 55.6. The month-over-month gain of 3.9 pts is the second largest since May 2009. It’s also the highest reading since September 2018 while the overall economy has been in the sixth month in a row.
Looking at some details, new orders rose 7.7pts to 67.9. Production rose 2.0 pts to 63.0. Prices rose 2.7pts to 65.5. Employment rose 3.6 pts to 53.2, back in expansion.
“The past relationship between the Manufacturing PMI and the overall economy indicates that the Manufacturing PMI® for October (59.3 percent) corresponds to a 4.8-percent increase in real gross domestic product (GDP) on an annualized basis,” says Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
