The overall economy grew for the sixty-fifth straight time, while the manufacturing sector expanded for the seventeenth consecutive month, the Institute for Supply Management reported Monday.
According to the ISM's monthly report on business, the ISM index grew to 59.0 in October from 56.6 in September.
Economists polled by Thomson Reuters predicted the index would slip to 56.2.
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 dropped to 53.5 from 59.5. The employment index rose to 55.5 from 54.6.
The production index crept to 64.8 from 64.6, the new orders index grew to 65.8 from 60.0; the supplier deliveries index climbed to 56.2 from 52.2; the export orders index decreased to 51.5 from 53.5; and the imports index gained to 54.5 from 53.0.
The inventories index increased to 52.5 from 51.5; the customers' inventories index rose to 48.0 from 44.5; and backlog of orders jumped to 53.0 from 47.0.
Respondents' comments included:
"Holiday orders are exceeding seasonal forecasts. Customers are demanding additional quantities above prior orders. Fuel costs and other positive signals appear to be creating demand above normal." (Food, Beverage & Tobacco Products)
"Weakness in commodity prices very positive on our business." (Fabricated Metal Products)
"We continue to see strong demand across multiple sectors." (Transportation Equipment)
"Business steady and strong." (Furniture & Related Products)
"Another strong month in terms of business growth." (Computer & Electronic Products)
"Most business segments are seeing an upward trend in orders - mostly from existing customers, but also some new customers. Transportation continues to be a major issue." (Chemical Products)
"Conditions are still basically flat." (Printing & Related Support Activities)
"Production is oversupplying demand, and prices have softened." (Wood Products)
"Outer body material changes in the auto industry means new equipment and manufacturing growth." (Machinery)
"Business conditions are good; sales and production volumes are generally increasing." (Miscellaneous Manufacturing)
