ISM manufacturing survey points to robust manufacturing growth

October ISM manufacturing data is available via Bloomberg:   ISM Manufacturing index jumped 2.5 points to 56.9.  New orders are up to 58.9.  Manufacturing employment rose more than one point to 57.7.  Production is at 62.7, up almost six points.  

The manufacturing sector surged in October led by a burst in new orders and supported by strong employment gains. The composite headline index jumped nearly 2-1/2 points to 56.9. New Orders are the standout, up nearly eight points to 58.9 to indicate strong month-to-month growth for the best reading since May. Employment rose more than one point to 57.7 indicating no let up in hiring.

The demand for labor reflects strong production needs. Production at 62.7 is up more than six points and, like new orders, is at its best level since May. Production needs made for a slowing in inventory accumulation. Delivery times, which surprisingly improved, do not confirm strength elsewhere.

Other readings include special strength for exports, a surprise slowing in imports, and steady pressures on input prices. The stock market is moving higher following the results which re-establish the manufacturing sector's leadership.

This report show significant strength in the manufacturing sector and exceeds expectations.  This really shows manufacturing growth to be the real driver of the overall growth in the United States.  This is definitely a blow to the double dip theory, that many (including myself have warned against). 

Source: Haver Analytics


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