United States manufacturing activity grew at a faster pace in October, according to the Institute for Supply Management, in a report that beat expectations and pointed to a broadening industrial recovery. The headline index rose to 55.5, up from 54.5 in September, with any reading above 50 indicating expansion.

Production leads the improvement

The production index provided most of the lift, jumping to 59.0 from 56.7 in September. New orders edged up to 55.5 from 55.3, while supplier deliveries ticked up to 59.1 from 59.0, a level the ISM said was consistent with slower deliveries as demand improves. Employment slipped slightly, to 52.4 from 52.7, but stayed above 50, indicating factory job growth for a fourth straight month.

Prices ease, but stay high

Price pressures eased a little without disappearing. The prices paid index fell to 75.2 from 77.9 in September, suggesting input costs were still rising sharply, only at a slower pace. The ISM survey chair was reported as not relieved by the small drop, and as not expecting prices to fall further until the Iran conflict is resolved. Respondents also raised tariffs as a concern, with more negative comments than in prior months.

A split verdict from a second survey

A separate survey told a softer story. The S&P Global final manufacturing PMI printed at 54.9, below its flash estimate of 56.0 and down from September's 55.9. Canada's reading slipped into contraction at 49.6, down from 51.5, and US construction spending for September fell 1.9%, missing forecasts. Attention now turns to Wednesday's ISM services report, Tuesday's midterms and Friday's jobs report.

Sources: Market Flux, 2 November 2026; dpa-AFX via TradingView, 2 November 2026.