US ISM Manufacturing PMI Rises to 55.5% in October, Beating Forecasts

The US manufacturing sector expanded at a faster pace in October 2026, with the Institute for Supply Management (ISM) manufacturing PMI rising to 55.5% from 54.5% in September. The reading exceeded the market forecast of 54.6% and marked the sector's tenth consecutive month of expansion.

The production index grew at its fastest pace in nearly five years, while the new orders index reached 55.5 and the employment index stood at 52.4. ISM also reported that the overall economy grew for a 24th consecutive month.

The combination of faster production growth and an expanding new orders index points to continued momentum in manufacturing activity. The headline PMI indicates the direction and breadth of change, however, rather than the size of the increase in output.

For manufacturers and suppliers, the relationship between orders and production is a key development to watch. If order growth continues, it could affect production planning and purchasing needs. The October figures alone do not establish how lasting those effects will be or how they will differ across businesses.