US manufacturing confidence strengthened in October, with factory activity accelerating to its highest level in nearly four years, signalling improved momentum in the world’s largest economy and potentially supporting demand across global supply chains.
The Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) rose to 55.5% in October from 54.5% in September, exceeding market expectations of 54.6%, according to its latest report released on November 2. The reading marked the 10th consecutive month of expansion in US manufacturing activity.
Production provided the strongest boost, with the Production Index climbing 2.3 percentage points to 59%, its highest level since November 2021. The New Orders Index also increased to 55.5% from 55.3%, indicating continued improvement in manufacturing demand.
The Employment Index, however, edged down to 52.4% from 52.7%, suggesting a slight moderation in workforce growth. Meanwhile, the Inventories Index returned to expansion territory at 51.4%, up from 48.6% in September.
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Despite improving factory activity, inflationary pressures remain a concern. The Prices Index declined to 75.2% from 77.9%, but continued to indicate rising input costs. Supplier delivery times also remained under pressure, with the Supplier Deliveries Index reaching 59.1%.
ISM survey committee chair Susan Spence said business sentiment deteriorated for the third consecutive month. Only 34% of respondents’ comments were positive, compared with 66% negative. Pricing volatility, longer lead times and tariffs were among the major concerns reported by manufacturers.
For the global textile and apparel supply chain, stronger US manufacturing activity offers an encouraging demand signal. Textile mills were among the 12 manufacturing industries reporting growth in October, while the sector also recorded expanding new orders and production.
However, persistent cost pressures and trade uncertainties could influence sourcing decisions, procurement costs and inventory strategies. For apparel-exporting economies such as Bangladesh, sustained US demand could support export opportunities, although stronger manufacturing activity alone does not guarantee increased clothing orders.
The latest figures indicate that US industrial momentum is strengthening, but inflation and supply-chain uncertainties continue to complicate the business outlook.