The economy grew for the 114th consecutive month, and the manufacturing sector for the 26th consecutive month in October, according to the latest ISM Report. The PMI was at 57.7%.
Despite the continued growth, the food, beverage, and tobacco industry reported price pressure from tariffs and that higher costs are starting to be passed on to the customer. A representative respondent was quoted as saying: “Protein prices continue under pressure from heavy U.S. supplies and export concerns related to trade tariffs. Higher costs related to trade tariffs are starting to be passed on to the cost of goods sold.”
Here’s what the food, beverage, and tobacco industry reported for October:
- Growth in new orders
- Growth in production
- Growth in employment
- Slower supplier deliveries
- Higher raw materials inventories
- Customer inventories too low
- Increased prices for raw materials
- Growth in order backlogs
- No change in new export orders
- Growth in imports
These results are exactly the same as the previous month. The average lead time for capital expenditures and MRO supplies increased again, to 152 and 35 days, respectively. Meanwhile the average lead time for production materials fell one day to 67 days.