Economy
ISM: Manufacturing index fell in Oct to lowest point of '24
Written by Ethan Bernard
November 1, 2024
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
The ISM Manufacturing PMI stood at 46.5% in October, 0.7 percentage points lower than the previous month, and the lowest reading so far in 2024. A reading above 50% indicates growth in the manufacturing economy, while a reading below 50% indicates contraction.
However, the overall economy continued in expansion for the 54th month after one month of contraction in April 2020. (A Manufacturing PMI higher than 42.5%, over a period of time, generally indicates an expansion.)
“US manufacturing activity contracted again in October, and at a faster rate compared to last month,” Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said in a statement on Friday. “Demand continues to be weak, output declined, and inputs stayed accommodative.”
Only five of the 16 domestic manufacturing industries featured registered growth month over month in October. Primary metals and fabricated metal products were both among those in contraction.
One Fabricated Metal Products respondent noted business levels remain depressed.
“It feels like a ‘wait-and-see’ environment regarding where the economy is heading; customers don’t want to commit to inventory, which is resulting in lower order levels,” the respondent said.
A respondent in the Machinery Industry said sales have been very slow the past six months.
“Interestingly, though, inquiries are up more than 30% from a year ago. This indicates there is pent-up demand, but customers are skittish about national and global economic conditions,” the respondent added.
The full October Manufacturing PMI report is available here on the ISM website.
Ethan Bernard
Read more from Ethan BernardLatest in Economy
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Final Thoughts
We all know the American news cycle moves pretty fast. Viral today, cached tomorrow. So it is with the US presidential election on Tuesday, Nov. 5. People have election fatigue. They've moved on to other things like planning holiday parties, debating Super Bowl hopefuls, or even starting to look forward to our Tampa Steel Conference in February.
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Architecture Billings Index remains dismal in September
Architecture firms continued to experience soft business conditions through September, according to the latest Architecture Billings Index (ABI) release by the American Institute of Architects (AIA) and Deltek.