The Manufacturing Report on Business for October 2014 from the Institute for Supply Management (ISM) shows some forward momentum, with the October PMI registering 59, an increase of 2.4% over September's reading of 56.6%, indicating continued expansion in manufacturing.
In fact, all indicators, except for exports, moved up. The new orders index took a nice jump to 65.8 in October from 60.0 in September. The production index moved up slightly from 64.6% in September to 64.8% in October. Employment also ticked up by 0.9% to 55.5% in October from September's 54.6%.
With manufacturing seeming to ramp up, supplier deliveries are slowing, to 56.2 in October from 52.2 in September, and the inventories index is showing growth, up 1% from 51.5 in September to 52.5 in October. However, customer inventories are showing "too low" at 48% in October from 44.5% in September. While that is an increase of 3.5%, it is still on the "contracting" side of the equation.
Prices remain on the increase, however, falling 6% to 53.5% in October from 59.5% in September. Backlogs are growing to 53% in October from 47% in September, also a sign that companies are getting busier as new orders grow.
Exports, which are still on the "expansion" side of the equation, have slowed to 51.5% in October from 53.5% in September. Imports are growing, up 1.5% in October to 54.5% from September's 53%.