US ISM Manufacturing PMI dropped slightly from 50.9 to 50.2 in October, a touch above expectation of 50.0. Looking at some details, new orders rose 2.1 to 49.2. Production rose 1.7 to 52.3. Employment rose 1.3 to 50.0. Supplier deliveries dropped -5.6 to 46.8. Inventories dropped -3.0 to 52.5. Prices dropped -5.1 to 46.6.
ISM noted that price index indicated decreasing prices for the first time since May 2020. Mentions of large-scale layoffs were absent from panelists’ comments, indicating companies are confident of near-term demand. Overall, the PMI corresponds to a 0.5% annualized growth in real GDP.
