Monthly manufacturing report shows positive movement


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%.
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