U.S. Manufacturing Index at 55.5 in October as Stocks Rise and Oil Falls
Key Facts
The Institute for Supply Management’s manufacturing index registered 55.5 in October, up one point from September’s reading of 54.5, signaling continued expansion in U.S. manufacturing activity. The institute said in a statement published by PR Newswire that the U.S. economy continued to expand for the twenty-fourth consecutive month. In markets, the S&P 500 closed at 7,650.26 points on 2 November, compared with a close of 7,580.07 points on 30 October, according to EL7 data. West Texas Intermediate crude closed at $97.46 per barrel, versus $104.12 in the previous session. These closing levels put moves in stocks and oil in the context of the day the manufacturing data were released, and differ from prices and intraday readings circulating during the session.
The improvement in the headline index was accompanied by a sharper rise in the production component, which registered 59.0 in October, compared with 56.7 in September. The institute said this was the highest production index reading since November 2021, when it reached 60.5. The new orders index also registered 55.5, pointing to continued strength in orders arriving at factories during the month. The comparison across indexes shows that production was stronger than the overall manufacturing reading, while new orders remained in expansion territory. The institute described the economy as being in its twenty-fourth month of consecutive expansion, placing October’s reading within a longer period of economic growth.
The Associated Press linked the rise in stocks to the market recouping some of the previous week’s losses, led by technology and artificial intelligence shares. By 11:45 a.m. Eastern time, the S&P 500 was up 0.6%, the Dow Jones had gained 539 points, or 1%, and the Nasdaq Composite had risen 0.7%. At the same time, Brent crude fell 7.4% to $105.03 per barrel, according to the report. The agency said lower oil prices helped stocks, including airlines and cruise companies that face large fuel bills. These figures are a snapshot during trading; the U.S. index and West Texas Intermediate crude closed at the levels recorded in EL7 data at the end of 2 November.
On the manufacturing side, Axios said demand for equipment linked to artificial intelligence is straining supply chains and pushing up prices. It quoted one manufacturer as saying that goods consumed by data centers “are in short supply and also facing pricing pressures.” This factor adds another dimension to the picture of industrial activity shown by the production and new orders indexes, as strong demand for data center supplies coincides with sourcing and pricing challenges. The institute said the production index registered 59.0 in October, while new orders reached 55.5. The headline manufacturing index was 55.5, up one point from September, with the economy continuing to expand for the twenty-fourth month, according to the institute.
Attention turns on 3 November to the September Job Openings and Labor Turnover report, scheduled for release at 10 a.m., according to the U.S. Bureau of Labor Statistics calendar. The Federal Reserve Bank of New York’s calendar also includes manufacturing, shipments and orders data on the same day. U.S. midterm elections are being held on Tuesday, and Axios said the possibility of renewed fighting related to the Iran war after the vote could pose another obstacle for the market. The next ISM manufacturing index, covering November data, is scheduled for release on 1 December 2026 at 10 a.m. Eastern time. This schedule gives markets near-term milestones for tracking the labor market, orders and industrial activity, alongside the political and geopolitical developments cited in the coverage.