For the seventeenth consecutive month, the manufacturing sector in the United States continued to expand. The overall economy grew for the 65th consecutive month, according to new information released in the latest version of the Manufacturing ISM Report on Business.
The report was issued by the chair of the Institute of Supply Management Manufacturing Business Survey Committee. The main takeaway from these numbers is that the manufacturing sector has continued to expand at an ideal rate and will continue to do so for the foreseeable future.
The report also revealed that the New Orders Index registered at almost 66 percent, indicating an increase of 5.8 percentage points over the same reading that was taken during the month of September. The Production Index registered at 64.8 percent, which represents a 0.2 percent increase over the previous month. Raw materials inventories registered 52.5 percent, which was an increase of a full one percentage point from the September reading. This number in particular represents a growth in inventories for the third straight month.
Comments from the associated business panel indicate that the growth is a result of positive business conditions overall. These individuals specifically cited both growth in demand and production volumes as contributing factors to the industry's success.
Out of the 18 different manufacturing industries, a full 16 of them are reporting growth in October. These industries include but are not limited to Appliances and Components, Nonmetallic Mineral Products, Beverage and Tobacco Products, Apparel, Printing and Related Supporting Activities, Transportation Equipment and more. The only manufacturing industry that reported any type of contraction during October was Petroleum and Coal Products.
Read the full report here: October 2014 Manufacturing ISM® Report On Business®