Factory production grows most since 2021

The Institute for Supply Management's manufacturing index rose one point to 55.5 in October, the second-highest reading in more than four years. The measure topped all but one forecast in a Bloomberg survey of economists. Figures above 50 indicate expansion. The production gauge notched its best reading since late 2021, data out Nov. 2 showed. A measure of new orders, a sign of demand, was the highest since July and remained well within expansionary territory. ISM's manufacturing gauge has now pointed to growth for 10 consecutive months, reversing a roughly three-year slump for the sector. The sustained pickup has encouraged manufacturers to hire more workers. Factory head count increased in October for a fourth month, the longest such stretch since early 2022. Factories are benefiting from strong economic growth, resilient consumer demand and solid business investment. The U.S. economy expanded in the third quarter at the fastest pace in a year, bolstered by business outlays on data centers and artificial intelligence, as well as industrial and other equipment. It was a steady October for the @ISM® Manufacturing PMI® Report, with the largest index swing in either direction just 2.8 points. New orders and backlogs growth fed production while #employment expanded again as the #ISMPMI increased to 55.5%. https://t.co/M8qe4yZ8iT #economy — Institute for Supply Management (@ism) November 2, 2026 Manufacturers in recent years have also had to contend with high inflation and supply chain disruptions amid tariffs and the Iran war. The Federal Reserve's preferred measure of inflation rose 3.6% from a year earlier in September, well above the central bank's…

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