The overall economy grew for the eighty-ninth straight time, while the manufacturing sector expanded for the second consecutive month, the Institute for Supply Management reported Tuesday.
According to the ISM's monthly report on business, the ISM index increased to 51.9 in October from 51.5 in September.
Economists polled by Thomson Reuters predicted the index would be 51.7.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. A reading of 50 shows the sector was unchanged in the month.
The prices paid index grew to 54.5 from 53.0. The employment index rose to 52.9 from 49.7.
The production index climbed to 54.6 from 52.8, the new orders index dropped to 52.1 from 55.1; the supplier deliveries index gained to 52.2 from 50.3; the export orders index increased to 52.5 from 52.0; and the imports index rose to 52.0 from 49.0.
The inventories index decreased to 47.5 from 49.5; the customers' inventories index declined to 49.5 from 53.0; and backlog of orders fell to 45.5 from 49.5.
Respondents' comments included:
- "Domestic business steady. Export business trending higher." (Chemical Products)
- "Very favorable outlook in the market." (Computer & Electronic Products)
- "We are looking at a considerable slowdown for October and November. Production is down 20 percent." (Primary Metals)
- "Business is much better." (Fabricated Metal Products)
- "Strong economy driving steady sales." (Food, Beverage & Tobacco Products)
- "Due to the hurricane and other storms, our business is up significantly." (Machinery)
- "Ongoing strength seen in 2016 — it's a good year." (Miscellaneous Manufacturing)
- "Customers continue to press price reductions." (Transportation Equipment)
- "Our business remains strong." (Plastics & Rubber Products)
- "Hard to predict oil price dynamics, but there seems to be a consensus that the market is stabilizing, at least above USD 50 bbl this month." (Petroleum & Coal Products)
