Washington:US manufacturing growth saw a significant acceleration in October, with factory output rising at its most rapid pace in nearly five years, as reported by the Institute for Supply Management.

According to Anadolu Agency – English, the institute's manufacturing purchasing managers' index (PMI) increased by one point to 55.5, surpassing economists' expectations that it would remain unchanged from September's figure of 54.5. A PMI above 50 indicates expansion in manufacturing activity.

The production index rose to 59 from 56.7, marking its highest level since November 2021. Additionally, the new orders index slightly increased to 55.5 from 55.3, marking the 10th consecutive month of growth. However, the employment index fell to 52.4 from 52.7, indicating a slower pace of hiring.

Twelve manufacturing industries, including plastics and rubber products, machinery, and computer and electronic products, reported growth. In contrast, printing and related support activities, paper products, and nonmetallic mineral products experienced contraction.

Raw material prices rose for the 25th consecutive month, though fewer manufacturers reported such increases. The share of manufacturers paying higher prices declined to 53.1% from 58.6% in September, resulting in a decrease in the prices index to 75.2 from 77.9. The institute cited higher steel and aluminum costs, import tariffs, and the Middle East conflict's impact on petroleum-based products as contributors to continued price pressures.

Supplier delivery times extended for the 11th consecutive month, with manufacturers reporting shortages of copper, steel, and electronic components. Factory inventories returned to growth after contracting in September.

In a separate analysis, S and P Global indicated that US manufacturing activity continued to expand in October, though at a slower rate than in September. The firm's final manufacturing PMI was 54.9, below both the preliminary estimate of 56 and September's reading of 55.9.