Contents
Economic activity within the Manufacturing PMI sector faced contraction for the 12th successive month in October, dropping to 46.7%, marking a decline of 2.3 percentage points from September’s 49%. Timothy R. Fiore, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee, highlighted the contraction in the latest Manufacturing ISM® Report On Business®.
New Orders and Backlogs Dip Manufacturing PMI
The New Orders Index lingered in contraction territory at 45.5%, down by 3.7 percentage points from September’s 49.2%. Employment witnessed a downturn, registering 46.8%, a decline of 4.4 percentage points from September’s 51.2%. Although production slightly expanded at 50.4%, it marked a decrease of 2.1 percentage points from September’s 52.5%.
Also Read: OPEC Meeting November 2023: What To Expect?
Manufacturing PMI Deliveries Improve
Supplier Deliveries, indicating quicker deliveries, climbed to 47.7%, up by 1.3 percentage points from September’s 46.4%. However, raw materials inventories contracted, dropping to 43.3%, down by 2.5 percentage points from September’s 45.8%.
Prices Decline, Exports and Imports Contract
The Prices Index signaled a decrease at 45.1%, slightly up by 1.3 percentage points from September’s 43.8%. Exports and Imports remained in contraction territory, at 49.4% and 47.9%, respectively.
Also Read: China Manufacturing PMI Slows Down Again In October
Impact on Industries and Outlook
Fiore highlighted that among the six largest manufacturing industries, only Food, Beverage & Tobacco Products witnessed growth in October. However, three industries fell into a composite PMI® calculation signaling manufacturing weakness.
Commodities Report: Price Movements and Shortages
The report outlined fluctuations in commodities’ prices and identified shortages in specific items, influencing the manufacturing landscape.
October 2023 Manufacturing PMI
The Manufacturing PMI® contracted to 46.7%, indicating a downward trend for the manufacturing economy. New Orders, Production, Employment, and Supplier Deliveries witnessed declines, reflecting the sector’s challenges.
Conclusion
As the manufacturing sector navigates challenging waters, the report offers a comprehensive overview of key indicators shaping economic activities. The next Manufacturing ISM® Report On Business® featuring November 2023 data will be released on December 1, 2023.
The October 2023 report indicates a persistent decline in the manufacturing sector, impacting new orders, employment, and production. While supplier deliveries improved, raw material inventories declined, influencing the industry’s dynamics. The report highlighted challenges faced by specific industries and offered insights from respondents, shaping the understanding of the economic landscape.
