U.S. manufacturing nearly flatlined in October according to the most recent Manufacturing ISM® Report on Business®. The manufacturing PMI registered as 50.2%, 0.7 percentage points lower than September, and just barely indicating growth.
According to Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, the manufacturing sector is expanding at its lowest rate since pandemic recovery began. On the bright side, the prices index decreased for a seventh straight month (46.6%) and fell into contraction territory. Meanwhile, mentions of large-scale layoffs were absent from panelist’s comments, indicating that companies are confident of near-term demands.
The food, beverage, and tobacco industry reported contraction for the month. The industry also reported a decline in new orders, a decrease in production, and paying an increased price for raw materials. On a positive note, the industry reported employment growth and faster supplier deliveries.
One industry respondent said, “Growing threat of recession is making many customers slow orders substantially. Additionally, global uncertainty about the Russia-Ukraine (war) is influencing global commodity markets.”
