Preview: Due November 2 - U.S. October ISM Manufacturing - Stable and positive
There does not appear to be any reason to expect much change in October’s ISM manufacturing index. We expect no change from September’s 54.5, which was only marginally changed from 54.6 in August. The data will continue to imply healthy manufacturing expansion, fueled by AI.
The message from the S and P manufacturing and the regional Fed surveys is fairly neutral, with most remaining clearly positive, though the Richmond Fed’s remained marginally negative.
In the detail of the ISM composite we expect marginal gains in new orders, production and inventories offset by slightly more significant dips in employment (after a September bounce) and delivery times (extending a correction from recent highs).
Prices paid do not contribute to the composite. We also expect little change, at 77.5 from a significantly stronger September reading of 77.7 that was the highest since May.
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