Manufacturing PMI Rose 1 Point to 55.5% in October

Tempe, AZ, November 2, 2026—The Manufacturing Purchasing Managers’ Index (PMI) registered 55.5% in October, 1 percentage point above the September figure of 54.5%, say the nation’s supply executives in the latest ISM Manufacturing PMI Report. 

The overall economy expanded for the 24th month in a row. (A Manufacturing PMI above 47.5%, over a period of time, generally indicates an expansion of the overall economy.) 

The New Orders Index expanded for the tenth consecutive month after four straight readings in contraction, registering 55.5%, up 0.2 percentage point compared to September’s figure of 55.3%. The October reading of the Production Index (59%) is 2.3 percentage points higher than the 56.7% recorded in September and the highest since November 2021 (60.5%). 

The Prices Index remained in expansion (or ‘increasing’ territory), registering 75.2%, a 2.7-percentage point decrease compared to September’s reading of 77.9%. The Backlog of Orders Index registered 54.6%, down 1.8 percentage points compared to the 56.4% recorded in September. The Employment Index reading of 52.4% is down 0.3 percentage point from September’s figure of 52.7%.

The Supplier Deliveries Index indicated slowing performance for the 11th month in a row after one month in ‘faster’ territory. The reading of 59.1% is up 0.1 percentage point from its September reading of 59%. (Supplier Deliveries is the only ISM PMI Reports index that is inversed; a reading of above 50% indicates slower deliveries, which is typical as the economy improves and customer demand increases.)

The Inventories Index registered 51.4%, returning to expansion and up 2.8 percentage points compared to September’s reading of 48.6%. The Customers’ Inventories Index reading of 41.6% is the same as in September.

The New Export Orders Index gained 0.3 percentage points in October for a reading of 51.2% versus 50.9% in September. The Imports Index registered 52.9%, an increase of 1.9 percentage points compared to September’s reading of 51%.

The 12 manufacturing industries reporting growth in October—listed in order—are plastics & rubber products; electrical equipment, appliances & components; machinery; computer & electronic products; textile mills; primary metals; transportation equipment; fabricated metal products; furniture & related products; chemical products; miscellaneous manufacturing; and food, beverage & tobacco products. The three industries reporting a contraction in October are printing & related support activities; paper products; and nonmetallic mineral products.