US factory activity speeds up in October as output hits a five year high

US factories grew faster in October. The Institute for Supply Management, the ISM, said its manufacturing index rose one point to 55.5. Economists had expected 54.5. Any reading above 50 means activity is growing. Production rose to 59, its highest level since November 2021.

Inventories moved back into growth and order backlogs fell a little. Employment was roughly flat at 52.3. The prices index eased by almost three points but stayed high at 75.2, so factory input costs are still climbing quickly. Long term Treasury yields slipped on the day as lower oil prices softened the inflation outlook. For the Federal Reserve the report shows a strong goods economy with price pressure that has not yet gone away.