According to the Institute for Supply Management, economic activity in the manufacturing sector expanded in October and the overall economy grew for the 101st consecutive month.

Although economic activity expanded, the October PMI decreased by 2.1 percentage points to 58.7% after reaching past 60% in September. The new orders index also fell during the month, although the 1.2 percentage point dip was not enough to pull it below 60%, as it finished with a reading of 63.4%. The production index also fell by 1.2 percentage points, landing at 61%. The employment index slipped just below 60% (59.8%) following a decrease of 0.5 percentage points from September.

As for the supplier deliveries index, a 3 percentage point decrease from September pushed it to a reading of 61.4% while the inventories index fell below 50% thanks to a 4.5 percentage point decrease. Prices for raw materials were higher for the 20th consecutive month despite a 3 percentage point decrease in the prices index to 68.5%.

“Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all continuing to grow in October, supplier deliveries continuing to slow (improving) and inventories contracting during the period,” said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee. “Prices continue to remain under pressure. The customers’ inventories index remains at low levels.”

Of the 18 manufacturing industries, 16 reported growth in October including machinery, transportation equipment and electrical equipment. Two industries reported the same level of activity as September.