ISM Manufacturing Index slips in October, still indicates economic expansion

• October ISM Manufacturing Index: 60.8 vs. 60.3 expected and 61.1 prior.
• Economic activity in the manufacturing sector rises for the 17th straight month.
• Prices Index jumps to 85.7 from 81.2 in September.
• One survey respondent, a maker of furniture and related products, said: "Costs continue to increase on all fronts, and we are considering our third price increase of the year for our customers."
• Respondents reported that prices are increasing in a wide range of commodities, with the most mentions made in polypropylene, steel and related products, corrugated packaging, and freight.
• New Orders: 59.8 vs. 66.7 in September.
• Production: 59.3 from 59.4.
• Employment to 52.0 from 50.2.
• Supplier Deliveries to 75.6 from 73.4.
• The Backlog of Orders Index at 63.6, falls 1.2 percentage points from 64.8 in September.
• "Business Survey Committee panelists reported that their companies and suppliers continue to deal with an unprecedented number of hurdles to meet increasing demand," said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
• "Global pandemic-related issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential," he added. "However, panel sentiment remains strongly optimistic, with four positive growth comments for every cautious comment."