The ISM Manufacturing PMI unexpectedly dropped to 46.5 in October 2024, down from 47.2 in September and below expectations of 47.6.
US manufacturing PMI lower-than-expected - ISM
This reading signaled a continued contraction in the manufacturing sector, marking the most severe decline since July 2023 amid ongoing weak demand, decreased output, and accommodating input conditions. Production (46.2 vs. 49.8), inventories (42.6 vs. 43.9), and order backlogs (42.3 vs. 44.1) all declined at a faster rate, while price pressures intensified (54.8 vs. 48.3).
New orders fall again
Although new orders (47.1 vs. 46.1) and employment (44.4 vs. 43.9) continued to decrease, they did so at a slower pace. Companies noted ongoing adjustments to workforce levels to align with anticipated demand. Meanwhile, supplier delivery times slightly improved (52 vs. 52.2).
