U.S. Manufacturing Edges Down in October

The Institute for Supply Management’s October PMI was down 2.1 points to 57.7 compared to September’s PMI of 59.8.  Although the number was slightly below analysts’ expectations, manufacturing still grew in October (a reading above 50 indicates expansion).  New Orders were down 4.4 points to 57.4, the lowest reading in 18 months, but still indicative of growth. Production was also down 4.0 points to 59.9 and Employment was off 2.0 points to 56.8.  Prices showed the biggest variance, increasing 4.7 points to 71.6, while New Export Orders (-3.8) and Imports (-0.2) both fell.  The reported quoted a number of survey respondents:

  • “All electronic components are having shortages and much longer lead times…” (Computer & Electronic Products)
  • “Tariffs are causing inflation: increased costs of imports…” (Chemical Products)
  • “Higher costs related to trade tariffs are starting to be passed on to cost of goods sold.” (Food, Beverage & Tobacco Products)
  • “Mounting pressure due to pending tariffs.  Bracing for delays in material from China” (Miscellaneous Manufacturing)
  • “Steel tariffs continue to negatively affect our cost, even though we utilize U.S. sources” (Fabricated Metal Products)

See the full report here.