ISM(R) 's Employment Index registered 52.9 percent in October, an increase of 3.2 percentage points when compared to the September reading of 49.7 percent, indicating growth in employment in October following three consecutive months of contraction. An Employment Index above 50.6 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, the 11 industries reporting employment growth in October -- listed in order -- are: Textile Mills; Printing & Related Support Activities; Miscellaneous Manufacturing; Furniture & Related Products; Paper Products; Electrical Equipment, Appliances & Components; Machinery; Food, Beverage & Tobacco Products; Chemical Products;Nonmetallic Mineral Products; and Primary Metals. The five industries reporting a decrease in employment in October are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Plastics & Rubber Products; Transportation Equipment; and Fabricated Metal Products.

Employment %Higher %Same %Lower Net Index

Oct 2016 20 62 18 +2 52.9

Sep 2016 17 63 20 -3 49.7

Aug 2016 16 65 19 -3 48.3

Jul 2016 17 68 15 +2 49.4

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations was slower in October as the Supplier Deliveries Index registered 52.2 percent, which is 1.9 percentage points higher than the 50.3 percent reported for September. A reading below 50 percent indicates faster deliveries, while a reading above 50 percent indicates slower deliveries.

The seven industries reporting slower supplier deliveries in October -- listed in order -- are: Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Transportation Equipment; Chemical Products; Machinery; Computer & Electronic Products; and Primary Metals. The four industries reporting faster supplier deliveries in October are: Paper Products; Plastics & Rubber Products; Fabricated Metal Products; and Miscellaneous Manufacturing. Seven industries reported no change in supplier deliveries in October compared to September.

Supplier Deliveries %Slower %Same %Faster Net Index

Oct 2016 8 87 5 +3 52.2

Sep 2016 8 85 7 +1 50.3

Aug 2016 8 86 6 +2 50.9

Jul 2016 10 85 5 +5 51.8

Inventories*

The Inventories Index registered 47.5 percent in October, which is a decrease of 2 percentage points when compared to the 49.5 percent reported for September, indicating raw materials inventories are contracting in October for the 16th consecutive month. An Inventories Index greater than 42.8 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The six industries reporting higher inventories in October -- listed in order -- are: Textile Mills; Nonmetallic Mineral Products; Furniture & Related Products; Computer & Electronic Products; Petroleum & Coal Products; and Miscellaneous Manufacturing. The 10 industries reporting lower inventories in October -- listed in order -- are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Primary Metals; Machinery; Paper Products; Chemical Products; Fabricated Metal Products; Transportation Equipment; and Printing & Related Support Activities.

Inventories %Higher %Same %Lower Net Index

Oct 2016 16 63 21 -5 47.5

Sep 2016 16 67 17 -1 49.5

Aug 2016 18 62 20 -2 49.0

Jul 2016 19 61 20 -1 49.5

Customers' Inventories*

ISM(R) 's Customers' Inventories Index registered 49.5 percent in October, which is 3.5 percentage points lower than the 53 percent reported in September, indicating that customers' inventory levels are considered too low in October.

The five manufacturing industries reporting customers' inventories as being too high during the month of October are: Primary Metals; Fabricated Metal Products; Furniture & Related Products; Chemical Products; and Transportation Equipment. The six industries reporting customers' inventories as too low during October -- listed in order -- are: Plastics & Rubber Products; Paper Products; Electrical Equipment, Appliances & Components; Machinery; Miscellaneous Manufacturing; andComputer & Electronic Products. Six industries reported no change in customer inventories in October compared to September.

Customers'

Inventories % Reporting %Too High %About Right %Too Low Net Index

Oct 2016 59 13 73 14 -1 49.5

Sep 2016 58 17 72 11 +6 53.0

Aug 2016 54 16 67 17 -1 49.5

Jul 2016 59 13 76 11 +2 51.0

Prices*

The ISM(R) Prices Index registered 54.5 percent in October, which is 1.5 percentage points higher than reported in September, indicating an increase in raw materials prices for the eighth consecutive month. In October, 25 percent of respondents reported paying higher prices, 16 percent reported paying lower prices, and 59 percent of supply executives reported paying the same prices as in September. A Prices Index above 52.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Producer Price Index for Intermediate Materials.

Of the 18 manufacturing industries, the seven industries that reported paying increased prices for its raw materials in October -- listed in order -- are: Apparel, Leather & Allied Products; Plastics & Rubber Products; Petroleum & Coal Products; Chemical Products; Food, Beverage & Tobacco Products; Paper Products; and Computer & Electronic Products. The eight industries reporting paying lower prices during the month of October -- listed in order -- are: Textile Mills; Fabricated Metal Products; Machinery; Electrical Equipment, Appliances & Components; Primary Metals; Transportation Equipment; Nonmetallic Mineral Products; and Miscellaneous Manufacturing.

Prices %Higher %Same %Lower Net Index

Oct 2016 25 59 16 +9 54.5

Sep 2016 20 6614 +6 53.0

Aug 2016 19 68 13 +6 53.0

Jul 2016 22 66 12 +10 55.0

Backlog of Orders*

ISM(R) 's Backlog of Orders Index registered 45.5 percent in October, a decrease of 4 percentage points when compared to the September reading of 49.5 percent, indicating contraction in order backlogs for the fourth consecutive month. Of the 88 percent of respondents who reported their backlog of orders, 16 percent reported greater backlogs, 25 percent reported smaller backlogs, and 59 percent reported no change from September.

The five industries reporting growth in order backlogs in October are: Textile Mills; Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Computer & Electronic Products; and Paper Products. The 11 industries reporting a decrease in order backlogs during October -- listed in order -- are: Wood Products; Primary Metals; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Furniture & Related Products; Transportation Equipment; Plastics & Rubber Products; Chemical Products; Miscellaneous Manufacturing; Machinery; and Fabricated Metal Products.

Backlog of Orders % Reporting %Greater %Same %Less Net Index

Oct 2016 88 16 59 25 -9 45.5

Sep 2016 87 19 61 20 -1 49.5

Aug 2016 88 18 55 27 -9 45.5

Jul 2016 86 16 64 20 -4 48.0

New Export Orders*

ISM(R) 's New Export Orders Index registered 52.5 percent in October, an increase of 0.5 percentage point when compared to the 52 percent reported for September, indicating growth in new export orders for the eighth consecutive month.

The six industries reporting growth in new export orders in October -- listed in order -- are: Textile Mills; Miscellaneous Manufacturing; Food,Beverage & Tobacco Products; Fabricated Metal Products; Chemical Products; and Computer & Electronic Products. The five industries reporting a decrease in new export orders during October are: Wood Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Transportation Equipment; and Machinery. Seven industries reported no change in new export orders in October compared to September.

New Export Orders % Reporting %Higher %Same %Lower Net Index

Oct 2016 79 12 81 7 +5 52.5

Sep 2016 76 15 74 11 +4 52.0

Aug 2016 78 16 73 11 +5 52.5

Jul 2016 76 14 77 9 +5 52.5

Imports*

ISM(R) 's Imports Index registered 52 percent in October, which is 3 percentage points above the September reading of 49 percent. This month's reading indicates growth in imports following two consecutive months of contraction in imports.

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November 01, 2016 10:15 ET (14:15 GMT)

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