results of the Institute for Supply Management’s October manufacturing survey are out.
The headline index unexpectedly rose to 56.4 in October from September’s 56.2 reading. Economists were looking for a decrease to 55.0.
Numbers above 50 indicate varying rates of expansion while numbers below 50 indicate various rates of decline, so this reading suggests that, contrary to expectations, American manufacturers shook off the government shutdown in October.
At right is a breakdown of the sub-components of the report.
Below is what respondents to the survey are saying:
- “New business is booming.” (Textile Mills)
- “The government shutting down and threatening to go into a default position is causing all kinds of concerns in our markets.” (Fabricated Metal Products)
- “The government shutdown has not had any impact on our business that I can determine, nor has it impacted any supplier shipments.” (Chemical Products)
- “Government spending continues to be slow in defence and military. The government shutdown and debt ceiling crisis did not affect business.” (Transportation Equipment)
- “Telecom market — wireless and VOIP — appear to be spiking. We are very busy; busier than we have ever been.” (Computer & Electronic Products)
- “Seasonal demand has not decreased at the typical pace. Market showing resiliency in the residential market.” (Primary Metals)
- “Business continues to improve every month for the past nine months.” (Furniture & Related Products)
- “Big Box Store discounting providing increased sales bump short term.” (Food, Beverage & Tobacco Products)
- “Our customers continue to be cautious and are closely managing their purchases. Business continues to be flat to slightly down.” (Machinery)
- “Outlook on general appliance market continues in a positive direction. Uncertainty, however, looms with unclear government direction pending.” (Electrical Equipment, Appliances & Components)