US factory activity picked up in October, ISM says

Key facts

• ISM's manufacturing PMI rose to 55.5 in October from 54.5 in September, above a Reuters poll forecast of 54.5.
• The survey's prices paid index eased to 75.2 from 77.9, still above a Reuters poll forecast of 77.5.
• The new orders measure rose to 55.5 from 55.3, and the supplier deliveries index edged up to 59.1 from 59.0.
• The employment measure slipped to 52.4 from 52.7, above a forecast of 52.0, ISM's survey showed.

The Institute for Supply Management said its manufacturing index rose to 55.5 in October from 54.5 in September, topping a Reuters poll of economists that had expected no change at 54.5, according to a Reuters report dated November 2.

The ISM's new orders measure edged up to 55.5 from 55.3, and exports also rose. Factory inventories increased. The survey's supplier deliveries index inched up to 59.1 from 59.0, a reading above 50 that indicates slower deliveries.

The prices paid gauge eased to 75.2 from 77.9 in September but stayed high; economists polled by Reuters had forecast 77.5. Factory employment grew at a slower pace, with the employment measure at 52.4 from 52.7 and above a forecast of 52.0.

Reuters said activity was driven by consumer spending and business spending on AI. The report said PCE inflation rose 3.6% year-on-year in September and that the Fed left its benchmark rate in the 3.75%-4.00% range on the preceding Wednesday while saying inflation remains elevated; economists expect a rate increase in December, it said.