Nov. 13, 2013
PMI Hits 2013 High of 56.4
Economic activity in the manufacturing sector expanded in October for the fifth consecutive month as the PMI registered 56.4, its highest figure in 2013, reports the Institute for Supply Management, Tempe, Ariz.
Of the 18 manufacturing industries, 14 reported growth in October, including fabricated metal products. Primary metals and miscellaneous manufacturing were among the four industries reporting contraction in October.
“The average PMI for January through October of 53.3 percent corresponds to a 3.5 percent increase in real gross domestic product on an annualized basis. In addition, if the PMI for October is annualized, it corresponds to a 4.4 percent increase in real GDP annually,” says Bradley J. Holcomb, chairman of ISM’s Manufacturing Business Survey Committee.
The New Orders Index increased slightly in October to 60.6 percent, while the Production Index decreased by 1.8 percentage points to 60.8 percent. Both the New Orders and Production indexes have registered above 60 percent for three consecutive months.
The Employment Index registered 53.2 percent, a decrease of 2.2 percentage points compared to September’s reading. The Inventories Index registered 52.5 percent in October, which is 2.5 percentage points higher than the 50 percent reported in September.