US manufacturing strengthens in October, input prices stay high
Economic Times 2 hrs ago·2 Nov 2026, 7:17 pm
US manufacturing activity in October showed a noticeable uptick, with the ISM manufacturing PMI climbing to 55.5 from 54.5 in September, outpacing most analysts’ forecasts. The rebound was largely driven by stronger consumer demand and spending on AI‑related equipment.
Despite the improved output, the index measuring factory input prices remained elevated at 75.2, signalling that cost pressures are still high. Persistent price inflation in the production chain could keep overall US inflation above the Federal Reserve’s 2% goal, potentially shaping future monetary‑policy decisions.
Investors should keep an eye on the next PMI release, upcoming US CPI data and any Fed commentary for clues on whether tighter policy may be needed, as these factors can influence equity valuations and interest‑rate‑sensitive assets.
Excerpt from Economic Times
US manufacturing activity accelerated in October, with the ISM manufacturing PMI rising to 55.5 from 54.5 in September, beating Reuters-polled economists' expectations. Strong consumer and AI-related business spending supported growth, but factory input prices remained elevated at 75.2, reinforcing concerns that US…Read the original at Economic Times
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