US Manufacturing PMI Hits 55.5% in October 2026, ISM Reports
ISM's October 2026 Manufacturing PMI reached 55.5%, signaling broad expansion across new orders, production, and employment.
Economic activity in the U.S. manufacturing sector expanded in October 2026, with the Institute for Supply Management reporting a Manufacturing PMI of 55.5%, according to the organization's monthly survey released Nov. 2 from Tempe, Arizona. A reading above 50% indicates expansion in the sector.
The headline figure was accompanied by growth across several key sub-indexes. New orders, production, and employment all registered expansion during the month, pointing to strengthening demand and increased factory-floor activity heading into the final quarter of the year.
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Supplier deliveries slowed during October, a dynamic typically interpreted as a sign of rising demand placing pressure on supply chains. Raw materials inventories grew, while customers' inventories were characterized as too low — a combination that often foreshadows sustained order activity in the near term as buyers work to restock.
On the cost side, prices continued to increase, adding to inflation considerations for manufacturers and their downstream customers. Both imports and exports expanded during the period, suggesting broad-based trade activity alongside domestic demand growth. Analysts note that simultaneous growth in imports and exports can reflect robust industrial output rather than simple trade imbalances.
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