ISM Manufacturing Data from October Was the Best in Nearly Two Years
US manufacturing activity was strong in October with the ISM index recording its highest figure since November 2018, according to CNBC.
New orders increased to the highest levels in almost 17 years due to an influx of demand for motor vehicles and other goods of that nature. On Monday, the Institute for Supply Management (ISM) said its index of national factory activity increased to 59.3 in October, the highest figure since November 2018, and an increase from the 55.4 reading in September. Economists polled by Reuters anticipated a reading of 55.8 in October.
The ISM survey was the last piece of major economic data that will be released prior to Tuesday's presidential election. The strong reading from the survey is good news for the economy even with growth expected to slowdown in the fourth quarter. When the survey reports a figure greater than 50, it indicates an expansion in manufacturing. Manufacturing also accounts for 11.3 percent of US gross domestic profit.
The pandemic has altered consumer and manufacturing behavior. Demand for goods has surpassed its pre-pandemic readings to help compensate for the lack of demand for service.