Trucking

Manufacturing Activity Extends Growth Streak as New Orders Remain Resilient

U.S. manufacturing expanded for a tenth consecutive month in October, with the Institute for Supply Management's Manufacturing PMI reaching 55.5, surpassing analyst expectations by one percentage point. The reading aligns with annualized real GDP growth of approximately 2.5 percent. New orders similarly expanded for the tenth straight month at 55.5, up 20 basis points from September, signaling sustained future demand. Production climbed to its highest level in five years at 59.0. Four of six major manufacturing sectors—machinery, computer and electronics, transportation equipment, and chemical products—reported growth. However, overall sentiment deteriorated, with positive commentary declining to 34 percent from significantly higher levels two months prior. Customers' inventories remained "too low," which typically supports future production. Supply chain pressures persist, with delivery times indicating constraints for eleven consecutive months. Pricing volatility, longer lead times, and tariffs remain primary concerns for manufacturers.