Nov. 12, 2014
PMI Climbs to 59 Percent in October
October's PMI of 59 percent was an increase of 2.4 percentage points from September and a match of the August reading, which was the highest since 2011, reports the Institute for Supply Management, Tempe, Ariz.
Economic activity in the manufacturing sector expanded in October for the 17th consecutive month, according to ISM. Of the 18 manufacturing industries surveyed, 16 reported growth in October, including fabricated metal products, miscellaneous manufacturing, primary metals and electrical equipment. Petroleum and coal products were the only areas reporting contraction.
The average PMI for January through October of 55.6 percent corresponds to a 4.1 percent increase in real gross domestic product, says Bradley J. Holcomb, chairman of ISM’s Manufacturing Business Survey Committee. If the PMI for October is annualized, it corresponds to a 5.2 percent increase in real GDP annually.
Among other measurements, the New Orders index registered 65.8 percent, an increase of 5.8 percentage points from September, while the Production Index was at 64.8 percent, 0.2 percentage points ahead of the prior month. The Employment Index grew for the 16th straight month, hitting 55.5 percent, an increase of 0.9 of a percentage point from September.