United States: Manufacturing inches up in October
November 1, 2013
In October, the ISM manufacturing index inched up to 56.4%, marking a negligible increase over the 56.2% recorded in September. The increase contrasted market expectations of a fall to 55.0%. The index continues to build on the gains registered in the past five months and is currently at its highest point in more than two and a half years, reinforcing the perception that the U.S. economy is recovering.
All five ISM indicators now sit above the 50.0% threshold that indicates expansion. Inventories registered the largest gain, increasing from 50.0% in September to 52.5% in October. New orders and supplier deliveries were also up. In contrast, production and employment fell compared to the previous month.
FocusEconomics Consensus Forecast panelists project that industrial output will increase 2.4% this year, which is unchanged from last month's forecast. For 2014, panelists see industrial production accelerating to a 3.5% expansion, which is also unchanged from last month's projection.
Author: Carl Kelly, Economist