US manufacturing PMI rose to 55.5% in October — The Hill

In the United States, business activity in the manufacturing sector expanded for the tenth consecutive month in October. The Manufacturing Purchasing Managers’ Index (PMI) rose to 55.5%, from 54.5% in September, The Hill reported, citing the Institute for Supply Management (ISM).

New orders and production increased

Four of the five components of the PMI improved in October compared with September. Indicators for new orders, production volumes, supplier deliveries and inventories increased. At the same time, the pace of employment growth in the sector slowed by 0.3 percentage points.

Overall sentiment among manufacturers worsened for the third consecutive month: 66% of comments received by ISM were negative. The Hill notes that the industry is under pressure from persistent inflation linked to the war in Iran and President Donald Trump’s tariffs. According to the Consumer Price Index, energy prices rose by 5.2% from August to September and by 20.4% year on year.

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Employment in the industry declined slightly

Despite the PMI increase, the number of workers in the US manufacturing sector, according to the Bureau of Labor Statistics and the Federal Reserve Bank of St. Louis, fell from approximately 12.67 million at the start of Trump’s second presidential term to about 12.65 million in September.

Trump previously promised to revive US manufacturing, saying that his tariffs would encourage companies to bring jobs back to the United States. In particular, on October 25, Audi announced plans to invest $4 billion in the company’s first manufacturing plant in the United States, which is planned to be built in Georgia. The company expects to create 4,500 jobs.