US Manufacturing PMI Climbs to 55.5% in October 2026
ISM's October manufacturing index hit 55.5%, signaling broad expansion across new orders, production, employment, and trade.
U.S. manufacturing activity expanded at an accelerating pace in October 2026, with the Institute for Supply Management's PMI reaching 55.5%, according to the ISM Manufacturing Report released Nov. 2 from Tempe, Arizona. Any reading above 50% indicates growth in the sector, making the October figure a notably strong signal of industrial momentum.
The report showed expansion across nearly every major category tracked by ISM. New orders and production both grew, while employment in the manufacturing sector also increased — a combination that suggests factory operators were adding capacity and workers to meet rising demand. Supplier deliveries slowed, a condition typically associated with heightened purchasing activity straining supply chains.
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On the inventory side, raw materials stockpiles grew while customers' inventories were reported as too low — a dynamic that historically points to continued near-term production pressure as downstream buyers seek to replenish stock. Import and export activity both expanded simultaneously, reflecting broad-based trade engagement rather than purely domestic demand.
Prices paid by manufacturers increased during the month, a development that may draw attention from policymakers monitoring inflation trends within goods-producing industries. Rising input costs alongside strong demand metrics present a mixed picture for the broader economic outlook, balancing growth optimism against potential margin and inflation pressures.
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