October ISM manufacturing index:

  • Prior was 47.8
  • Employment 47.7 vs 46.3 prior
  • Prices paid 45.5 vs 49.7 prior
  • New orders 49.1 vs 47.3 prior
  • Production 46.2 vs 47.3
  • Imports 45.3 vs 48.1 prior
  • New export orders 50.4 vs 41.0 prior

This isn't a great number. It's slightly better than last month but still below 50. This will likely be brushed aside as a side-effect of the GM strike.

Looking through the comments in the report, there isn't a single positive comment in the report:

  • "Customer demand is down, and we are expecting a very soft fourth quarter, without much relief in sight for Q1. Suppliers report the continued rise in labor costs, which are ultimately reflected in the rising product costs." (Computer & Electronic Products)
  • "The chemical manufacturing industry is depressed; demand across many markets globally is down, and pricing is as a result." (Chemical Products)
  • "Automotive sales continue to decrease; however, trucks and SUVs are still providing decent revenue. Cautiously optimistic for the near term." (Transportation Equipment)
  • "Economy is showing slight signs of weakening. The same business headwinds on trade, tariffs, and currency uncertainty are making the environment challenging." (Food, Beverage & Tobacco Products)
  • "Been hearing from lots of my suppliers that their business is down and [they are] looking for more work in the metal processing [and] machining areas. We remain very busy." (Fabricated Metal Products)
  • "Production demand is softening; some [of it is] due to seasonality, [but] much [is] due to customer order rate declining and dealer inventory stabilizing." (Machinery)
  • "Business for thermoplastic resins is very strong, but margins continue to be under pressure due to tariffs and global economy uncertainty." (Plastics & Rubber Products)
  • "Trade cost pressures continue to be a headwind in our business." (Paper Products)
  • "Automotive related manufacturing is definitely slowing in the U.S. I think we are seeing the negative impacts of the tariff war with China and the unsigned [U.S.-Mexico-Canada Agreement] deal starting to hurt consumer confidence, especially on large purchases. Corporations are slowing orders/production accordingly." (Primary Metals)
  • "Our business levels have softened over the last three to five months, in the U.S. market [and] globally. Germany and China are both experiencing similar slowdowns. We are in the industrial industry, and the outlook appears to remain soft into Q1 of 2020." (Electrical Equipment, Appliances & Components)