UNITED STATES · ECONOMY
Key Facts
- What happened The Institute for Supply Management’s factory index rose to 55.5 in October 2026 from 54.5.
- Versus forecast Analysts expected 54.6, so the reading beat forecasts by 0.9 points.
- The trend The index has signalled expansion for ten months in a row, the longest run since 2022.
- The catch The price gauge stayed at 75.2, so factory input costs are still rising fast.
- What to watch The November reading and whether the weaker survey from data firm S&P Global catches up.
US factories grew faster in October, led by a jump in production, though input costs and a weaker second survey temper the news.
US manufacturing picked up speed in October 2026, according to the Institute for Supply Management (ISM), a US purchasing professionals’ group, which published its survey on Monday 2 November 2026. Its manufacturing index rose to 55.5 from 54.5, above the 54.6 forecast.
For US readers, the survey is one of the earliest monthly reads on the health of American industry. A reading above 50 means more factories report growth than decline.
What Happened
The ISM manufacturing PMI, or purchasing managers’ index, asks buyers at US factories whether orders, output, hiring and prices are higher or lower than a month earlier. The October reading of 55.5 was the tenth monthly reading above 50 in a row, the longest stretch since 2022.
ISM’s production index jumped to 59.0, its highest level since November 2021. Inventories rose to 51.4 from 48.6, back above the 50 line.
Where Costs and Jobs Stand
The prices index eased to 75.2 from 77.9 and came in below the 77 forecast. ISM says it still signals widespread increases in input costs, including energy, metals and electronic components.
The employment index slipped to 52.4 from 52.7, under the 53 forecast. Supplier deliveries edged up to 59.1, which means delivery times are still lengthening.
Why the Second Survey Matters
A separate survey went the other way. The S&P Global US manufacturing PMI, from the data firm of that name, fell to 54.9 from 55.9 and missed its 56 forecast.
Both gauges stay far above 50, so neither points to a downturn. The gap shows that the sector’s speed is less certain than the ISM headline alone suggests.
What It Means
Factories are producing more, but part of the headline gain comes from stock building, since inventories rose. If orders do not follow, production could ease in coming months.
For readers abroad, strong US factory output supports demand for industrial inputs, while a prices reading of 75.2 shows cost pressure has not gone away. That pressure matters for firms and investors in countries that supply US industry with metals and energy.
What Would Change the Picture
A November ISM reading below the September level of 54.5 would erase the October gain and suggest it was temporary. A reading above 55.5 with the S&P Global index recovering toward 56 would show the two surveys agreeing on stronger growth.
A prices reading that keeps falling below 75.2 would confirm that cost pressure is cooling. This report does not explain why the two surveys diverged, and the sample and timing differences between them are not detailed here.
Sources: Institute for Supply Management, Manufacturing PMI Report on Business, October 2026, 2 November 2026; RT economic calendar for forecasts, previous readings and the S&P Global survey. Related: Chicago Business Index slips to 55.3 in October, US jobs report tests peso and real, and the North America hub. This is news, not investment advice.
Frequently Asked Questions
What Did the ISM Manufacturing Index Show in October 2026?
It rose to 55.5 from 54.5 in September and beat the 54.6 forecast. A reading above 50 means US factory activity is expanding.
Why Did Two US Factory Surveys Differ?
The S&P Global manufacturing PMI fell to 54.9 from 55.9 while the ISM index rose. The data released give no reason, and both stay well above 50.
Is Factory Price Pressure Easing?
Slightly. The ISM prices index fell to 75.2 from 77.9 but remains far above 50, so input costs are still rising, only more slowly.
What Would Show the Rise Is Lasting?
A November ISM reading above 54.5 and ideally above 55.5 would confirm it. A fall below 54.5 would suggest the October gain was temporary.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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