- Prior was 50.9
- Prices paid 46.6 vs 52.5 expected (prior 51.7) — first decline since May 2020
- Production 52.3 vs 50.6 prior
- Employment 50.0 vs 48.7 prior
- New orders 49.2 vs 47.1 prior
- Order backlog 45.3 vs 50.9 prior (first reading below 50 in 27 months)
- New export orders 46.5 vs 47.8 prior
“The US manufacturing sector continues to expand, but at the lowest rate since the coronavirus pandemic recovery began. With panelists reporting softening new order rates over the previous five months, the October index reading reflects companies’ preparing for potential future lower demand,” the report said.
“Weakness in European economies and China’s economic sluggishness continued to constrain new export orders expansion and negatively impact new order rates,” the report said.
Comments in the survey highlight inflation pressures declining.
“Flat business activity; continued electronics market challenges.” [Computer & Electronic Products]
“Customers are canceling some orders. Inventories of finished goods increasing. Expect some bounce back as some customers may be waiting for commodity prices to decline (further).” [Chemical Products]
“Challenges with labor and parts delivery are easing. Order levels are slowing down after pent-up demand in the previous month.” [Transportation Equipment]
“Growing threat of recession is making many customers slow orders substantially. Additionally, global uncertainty about the Russia-Ukraine (war) is influencing global commodity markets.” [Food, Beverage & Tobacco Products]
“We have seen a general pullback in available capital budgets from our customers, and that is having a significant impact on our sales in the fourth quarter.” [Machinery]
“Housing market is down, so our business is affected. Capacity has increased over the last two years due to high orders of consumer goods and appliances, so now we’re trying promotions to get our orders up to where we can use all our capacity.” [Electrical Equipment, Appliances & Components]
“Customer demand has been slower for two months. Production is decreasing our inventory and (we are) implementing forecasts carefully. The headwind seems to be very strong, so we need to be prepared for that.” [Fabricated Metal Products]
“International conditions loom large and seem very foreboding. Overall, we still think 2023 will be a positive year, with at least some moderate growth.” [Nonmetallic Mineral Products]
“Lead times are improving. Plastic prices are coming down.” [Plastics & Rubber Products]
“Prices are continuing a slight decline. Suppliers are trying to hold off decreases, but competition is increasing.” [Miscellaneous Manufacturing]