Board Converting News, November 9, 2020

ISM: Manufacturing Grows Again In October

“The New Orders Index registered 67.9 percent, an in- crease of 7.7 percentage points from the September read- ing of 60.2 percent. The Production Index registered 63 percent, an increase of two percentage points compared to the September reading of 61 percent. The Backlog of Orders Index registered 55.7 percent, 0.5 percentage point higher compared to the September reading of 55.2 percent. The Employment Index registered 53.2 percent, an increase of 3.6 percentage points from the September reading of 49.6 percent. The Supplier Deliveries Index registered 60.5 percent, up 1.5 percentage points from the September figure of 59 percent. “The Inventories Index registered 51.9 percent; 4.8 per- centage points higher than the September reading of 47.1 percent. The Prices Index registered 65.5 percent, up 2.7 percentage points compared to the September reading of 62.8 percent. The New Export Orders Index registered 55.7 percent; an increase of 1.4 percentage points com-

Economic activity in the manufacturing sector grew in Oc- tober, with the overall economy notching a sixth consecu- tive month of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued last week by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Manage- ment (ISM) Manufacturing Business Survey Committee. “The October Manufacturing PMI registered 59.3 per- cent, up 3.9 percentage points from the September read- ing of 55.4 percent and the highest since September 2018 (59.3 percent). This figure indicates expansion in the over- all economy for the sixth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth.

pared to the September reading of 54.3 per- cent. The Imports Index registered 58.1 per- cent, a 4.1 percentage point increase from the September reading of 54 percent. “The manufacturing economy continued its recovery in October. Survey Committee members reported that their companies and suppliers continue to operate in reconfig- ured factories; with every month, they are becoming more proficient at expanding out- put. Panel sentiment was optimistic (two pos- itive comments for every cautious comment), a slight decrease compared to September. Demand expanded, with the (1) New Orders Index growing at strong levels, supported by the New Export Orders Index expanding moderately, (2) Customers’ Inventories Index at its lowest figure since June 2010 (35.8 per- cent), a level considered a positive for future production, and the (3) Backlog of Orders In- dex expanding at a slightly faster rate com- pared to the prior three months. “Consumption (measured by the Produc- tion and Employment indexes) contributed positively (a combined 5.6 percentage point increase) to the Manufacturing PMI calcula- tion, with five of the top six industries con- tinuing to expand output strongly. “The Employment Index broke into expan- sion territory for the first time since July 2019. Inputs — expressed as supplier deliveries, inventories and imports — continued to in- dicate input-driven constraints to production expansion, but at slower rates compared to September, due to a return to growth in in- ventory levels. Inputs improved compared to September and contributed positively to the Manufacturing PMI calculation, with a

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November 9, 2020

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