US Manufacturing Expands at Faster Pace, Production Index Hits Highest Since 2021

The Institute for Supply Management (ISM) manufacturing index rose 1 point to 55.5 in October, its second-highest level in more than four years. The reading came in above nearly all economists' forecasts in the survey. A reading above 50 indicates that the manufacturing sector is expanding. Data released Monday showed the production index reached its highest level since late 2021. The new orders index, which reflects demand, rose to its highest since July and remained firmly in expansion territory. The ISM manufacturing index has shown industry growth for 10 consecutive months, and factory employment rose for a fourth straight month in October, marking the longest stretch of growth since early 2022. Twelve industries posted growth in October, including electrical equipment, machinery, and computers and electronic products. The three industries reporting contraction were printing, paper, and nonmetallic mineral products. (Caixin)