Manufacturing sector marks 10 straight months of growth ahead of midterms

US manufacturing expanded for a tenth consecutive month in October, according to the Institute for Supply Management’s survey released on 2 November, the day before the midterm elections. Its purchasing managers’ index rose to 55.5 from 54.5 in September; a reading above 50 indicates expansion. New orders edged higher, while the production index climbed to 59.0, its highest level since November 2021. The employment index remained in expansion territory at 52.4, although its pace of growth slowed slightly.

The stronger output figures came alongside persistent cost pressures. ISM’s index of prices paid fell from 77.9 to 75.2, indicating that input prices were still rising, but more slowly. Manufacturers also reported difficulty obtaining supplies, while 66% of the comments received by ISM expressed negative sentiment. The survey points to sustained growth in factory activity ahead of the vote, but its employment index measures the direction of hiring across surveyed firms rather than the total number of manufacturing jobs.