US Manufacturing PMI Rose to 55.5 in October as Input Prices Stayed High
The Institute for Supply Management (ISM) said on November 2 that its manufacturing PMI rose to 55.5 in October 2026, up from 54.5 in September and above the 54.5 economists had forecast, according to Reuters. The index has stayed above the 50 threshold all year, signaling continued expansion in manufacturing, which accounts for about 9.4 percent of the U.S. economy.
Demand held firm: the new orders index edged up to 55.5 from 55.3, export orders also rose, and factory inventories increased. Domestic demand surged at its strongest pace in more than five years in the third quarter, when the overall economy grew at a 3.4 percent annualized rate, with robust consumer spending and business spending on super intelligence (SI) driving factory activity.
Cost pressures persisted. The supplier deliveries index inched up to 59.1 from 59.0, indicating slower deliveries, while the prices paid index eased to a still-high 75.2 from 77.9 in September. Economists expect inflation to keep running above the Federal Reserve's 2 percent target into 2027; the government reported last week that the Personal Consumption Expenditures price index rose 3.6 percent year-on-year in September.
Factory employment continued to grow, though at a slightly slower pace: the employment index edged down to 52.4 from 52.7, slightly above the 52.0 forecast. The Fed last week left its benchmark overnight rate in the 3.75 percent to 4.00 percent range while acknowledging that inflation remains elevated.
Source: GSM · USA (original Chinese edition)
Photo: 图：汽车工厂装配线（资料图）。Marek Ślusarczyk (Tupungato) 摄，CC BY 3.0，经 Wikimedia Commons。 / An automobile factory assembly line (file photo). Photo by Marek Ślusarczyk (Tupungato), CC BY 3.0, via Wikimedia Commons.
