ISM Manufacturing PMI — October 2026
Headline: The PMI rose 1.0 point to 55.5, signaling manufacturing expansion for a 10th consecutive month and a faster pace than in September. It was above the six-month average of 54.1, though still within the prior six-month range of 52.7–55.6. The reading is above the 50 manufacturing breakeven and is consistent with broader economic growth, above the 47.5 economy breakeven.
Sub-indices:
| Index | Level | Prior | Change | Direction | vs 6-mo |
|---|---|---|---|---|---|
| New Orders | 55.5 | 55.3 | +0.2 | Growing | above avg (55.4) |
| Production | 59.0 | 56.7 | +2.3 | Growing | 6-mo high |
| Employment | 52.4 | 52.7 | -0.3 | Growing | above avg (50.2) |
| Supplier Deliveries | 59.1 | 59.0 | +0.1 | Slowing | below avg (59.3) |
| Inventories | 51.4 | 48.6 | +2.8 | Growing | above avg (50.1) |
| Customers' Inventories | 41.6 | 41.6 | 0.0 | Too Low | above avg (41.5) |
| Prices | 75.2 | 77.9 | -2.7 | Increasing | below avg (76.6) |
| Backlog of Orders | 54.6 | 56.4 | -1.8 | Growing | above avg (52.9) |
| New Export Orders | 51.2 | 50.9 | +0.3 | Growing | above avg (50.7) |
| Imports | 52.9 | 51.0 | +1.9 | Growing | above avg (52.6) |
Key moves:
- Production climbed to a six-month high of 59.0, above its six-month average of 55.6.
- Inventories crossed into expansion, rising from 48.6 to 51.4.
- Prices eased 2.7 points to 75.2, below their six-month average of 76.6, but remain elevated.
Insights:
- The inventory build looks more consistent with stocking for demand than an involuntary accumulation: New Orders are growing at 55.5, while Backlog remains expansionary at 54.6, despite its monthly decline.
- Customers’ Inventories remain too low at 41.6. That points to potential replenishment demand, a supportive signal for the production pipeline.
- Supplier Deliveries at 59.1
