US ISM Manufacturing PMI reaches 55.5 in October, above the 54.6 forecast

The Institute for Supply Management's Manufacturing Purchasing Managers' Index (PMI) rose to 55.5 in October from September's 54.5, exceeding the market forecast of 54.6. The reading indicated that manufacturing activity in the United States (US) expanded at a faster pace in October.

Elsewhere in the report, the Prices Paid Index, which measures inflation, fell from 77.9 to 75.2, while the Employment Index slipped to 52.4 over the period.

Commenting on the findings, Susan Spence, Chair of the ISM Manufacturing Business Survey Committee, said: "in October, US manufacturing activity remained in expansion territory. Of the five subindexes that make up the PMI, four (New Orders, Production, Supplier Deliveries and Inventories) grew faster than the previous month, while Employment growth slowed down by 0.3 percentage point."

Spence also noted: "In October, general sentiment got worse for a third month in a row, with 34 percent of the comments positive and 66 percent negative (a 1-to-2 ratio of positive to negative sentiment)." She added: "Among negative comments, pricing volatility was mentioned in 62 percent, longer lead times 41 percent, tariffs 25 percent and the Iran war 21 percent; most comments mentioned multiple factors."

Markets Show Little Response to the Report

At the time of writing, the US Dollar Index stood at 101.60, down 0.35% on the day, with the report prompting no discernible market response.