The ISM Manufacturing PMI rose to 55.5 in October 2026 from 54.5 in September, comfortably beating market expectations of 54.6. This reading represents the sector’s second-fastest rate of expansion in nearly four years, led chiefly by stronger output growth: the Production Index increased to 59.0 from 56.7. New orders also grew at a slightly quicker pace (55.5 versus 55.3), while employment gains eased only marginally (52.4 versus 52.7).
At the same time, the Supplier Deliveries Index edged up by 0.1 point to 59.1, and the Inventories Index climbed 2.8 points to 51.4. The Prices Index fell to 75.2 from 77.9, though it remained at a high level.
Overall, the survey indicates that robust demand for AI, data centers, semiconductors, and infrastructure continues to underpin activity across several manufacturing industries. Nonetheless, persistent inflation, uncertainty over tariffs, ongoing supply constraints, and cautious customer spending are still weighing on broader business conditions and investment decisions.
