However, it's already been reported that some analysts believe this data could indicate the U.S. may avert a recession in the near future.
All eyes are on the PMI reading, registering 50.8 percent last month. (A reading above 50 percent indicates the manufacturing economy is generally expanding; below 50 percent indicates it is generally contracting.) Although the PMI decreased 0.8 percentage point from September's reading of 51.6 percent, it still remains about 50 percent-a good value.
Eight of the 18 manufacturing industries reported growth in October. In order, they are: Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Primary Metals; Fabricated Metal Products; Paper Products; and Machinery. The six industries which reported contraction, in order, are: Plastics & Rubber Products; Chemical Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; and Miscellaneous Manufacturing.
Other key data in ISM's latest manufacturing "Report On Business" include:
- ISM's Employment Index registered 53.5 percent, 0.3 percentage point lower than the 53.8 percent reported in September. This is the 25th consecutive month this index has been above 50 percent.
- The delivery performance of suppliers to manufacturing organizations was slower as the Supplier Deliveries Index registered 51.3 percent, 0.1 percentage point lower than the 51.4 percent registered in September.
- The Inventories Index registered 46.7 percent, 5.3 percentage points lower than the 52 percent reported in September.
- The ISM Customers' Inventories Index registered 43.5 percent, 5.5 percentage points lower than in September when the index registered 49 percent.
- The ISM Prices Index registered 41 percent, 15 percentage points lower than the 56 percent reported in September.
- ISM's Backlog of Orders Index registered 47.5 percent, 6 percentage points higher than the 41.5 percent reported in September.
- ISM's New Export Orders Index registered 50 percent, 3.5 percentage points lower than the 53.5 percent reported in September.
- ISM's Imports Index registered 49.5 percent, 5 percentage points lower than the 54.5 percent reported in September. This is the first month of contraction in the index following 25 consecutive months of growth.