Manufacturing activity picked up pace in October

Manufacturing activity expanded at a faster pace in October on a pick up in new orders, supplier deliveries, hiring and productivity. 

The latest Institute for Supply Management’s index released Monday rose to 59 last month, tying the highest level in the past year, up from 56.6 in September.

{mosads}Readings above 50 reflect expansion. September’s reading fell after hitting 59 in August.

New orders registered 65.8 up from 60 in September.

Production rose to 64.8 in October up slightly from 64.6 and hiring was up to 55.5, an increase from the September reading of 54.6.

Inventories rose to 52.5 percent up from 51.5, reflecting three straight months of growth.

Of the 18 manufacturing industries, 16 reported growth in October with only petroleum and coal products growing at a slower pace. 

Comments from the trade group of purchasing managers were generally positive.

A respondent from the food, beverage and tobacco products said: “Holiday orders are exceeding seasonal forecasts. Customers are demanding additional quantities above prior orders. Fuel costs and other positive signals appear to be creating demand above normal.”

A respondent from the transportation equipment sector said: “We continue to see strong demand across multiple sectors.” 

Last week, the Commerce Department said the economy grew at a 3.5 percent annual pace in the July-September quarter.