U.S. October ISM Manufacturing firm, September Construction Spending slips
October’s ISM manufacturing index of 55.5 is up from 54.5 in September and 54.6 in August but slightly below July’s 55.6 which was the strongest since May 2022. The data continues to imply a positive manufacturing picture.
Changes to new orders, delivery times and employment indices were marginal leaving production and inventories to drive the improvement in the composite.
Prices paid do not contribute to the composite. The index of 75.2 is down from 77.9 in September and the recent high if 84.6 seen in April, though above the 71.1 seen in both July and August.
September construction spending at -1.9% was much weaker than expected but does not quite erase an upwardly revised 2.0% increase in August.
There is a contrast between continued strength in private non-residential construction, up 1.1%, supported by data centers, and a 5.5% fall in residential construction as rising mortgage rates weigh. Public construction was almost unchanged, falling by 0.1%.
