Manufacturing Expands for 24th Straight Month

The ISM Manufacturing PMI rose to 55.5 percent in October, with growth in new orders and production.

Updated on Nov. 3, 2026 in Manufacturing

Manufacturing Expands for 24th Straight Month

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The Institute for Supply Management's Manufacturing PMI registered 55.5 percent in October, one point above September, marking expansion for the 24th consecutive month. New orders rose for the 10th straight month, and the Production Index reached 59 percent, its highest level since November 2021.

Why it matters

The reading signals continued strength in U.S. factory activity even as price pressures and supply-chain concerns mount. Sentiment among respondents weakened for a third straight month, pointing to caution ahead.

The Prices Index reached 75.2 percent, down 2.7 points from September, while order backlogs fell to 54.6 percent, down 1.8 points. Respondents cited pricing volatility (62 percent), longer lead times (41 percent), and tariffs (25 percent) as concerns.

The players

Institute for Supply Management (ISM)

The U.S. nonprofit professional association that publishes the Manufacturing PMI, compiled from its monthly Manufacturing Business Survey of purchasing and supply executives.

The details

Textile mills were among 12 manufacturing industries reporting growth in October. Sentiment worsened for the third consecutive month, with 66 percent of comments negative, and pessimistic respondents pointed to pricing volatility, lead times, tariffs and the Iran war.

October 2026: Manufacturing PMI reached 55.5 percent, extending expansion.
November 2, 2026: ISM released the October PMI report.

Market Landscape

The reading extends a run of factory expansion that has persisted through the 2020s supply-chain disruptions. Against the ISM's 47.5 percent expansion threshold, the October figure shows sustained momentum even as tariff and input-cost pressures build.

Persistent price increases and longer lead times may affect the cost and delivery schedules of manufactured goods. Consumers and businesses that buy manufactured inputs could see these pressures in pricing and availability.

The takeaway

Watch the Prices Index and order backlogs, since rising costs and softening backlogs can foreshadow slower growth even when headline expansion continues. Businesses planning purchases should build in longer lead times and price volatility.