Preliminary 56.0Prior month 55.9Details for October 2026 from the S&P Global: Manufacturing PMI: 54.9. Prior 55.9, a 52-month high.Employment: Strongest growth since April 2021.Selling prices: Fastest increase since September 2022.Supplier delivery times: Greatest lengthening since August 2022.New orders: Growth slowed to its weakest since March.Export orders: Rose marginally for the first time since June 2025.US manufacturing continued to expand solidly in October, but growth lost some momentum. According to the supplied S&P Global report, the Manufacturing Purchasing Managers’ Index slipped to 54.9 from 55.9 in September, remaining above the 50.0 expansion threshold for a fifteenth consecutive month. Output and new orders increased at slower rates, while export demand finally edged higher despite continued tariff headwinds.The concern remains inflation. Higher energy, transportation and metals costs, along with tariffs and supply shortages, pushed manufacturers to raise selling prices at the fastest pace since September 2022. Suppliers struggled to meet demand, particularly for products tied to AI data center construction. Delivery delays and rising orders added to backlogs, prompting the strongest increase in manufacturing employment since April 2021.Chris Williamson, Chief Business Economist at S&PGlobal Market Intelligence:“US factories continued to report strong expansion inOctober, sustaining the sector’s best growth spell sinceearly 2022. The upturn is also generating jobs at a pacenot seen for five-and-a- half years, during the surge indemand seen during the pandemic.However, growing pains are clearly evident, withfactories struggling to meet strong demand, especiallyfor AI-related goods and equipment, amid supply chaindisruptions. Delivery delays, often linked to shipping andlogistics issues, are more widespread than at any timesince 2022.With demand often exceeding supply, producershave been increasingly able to pass higher costson to customers, notably for energy-related inputs.October consequently saw another leg-up in terms ofmanufacturers’ selling price inflation to the steepestsince September 2022. Such steep growth in factorygate prices will inevitably feed through to consumersin the coming months, keeping inflation well above theFed’s target and adding to pressure on policymakers toraise interest rates further.” Quick analysis: Growth slowed, but this is still a firm manufacturing report. Strong hiring and rising selling prices could give the Fed less room to ease policy. That combination would normally support the dollar and Treasury yields, while higher costs could pressure equity margins. The offset is softer new-order growth, with some customers bringing purchases forward to lock in prices. The question is how much underlying demand holds up once that buying passes.What this report measures: S&P Global’s monthly Manufacturing Purchasing Managers’ Index surveys manufacturers about output, orders, employment, supplier deliveries and inventories. Readings above 50 signal improving operating conditions; readings below 50 signal deterioration. Traders also monitor its price measures for early signs of inflation pressure.The ISM manufacturing PMI will be released at 10 AM with expectations of 54.5 versus 4.5 last month. The US dollar is trading up and down in the North American session. US stocks are higher with the Dow industrial average at 1.07%, S&P index up 0.60% and the NASDAQ composite index up 0.77%US yields are mostly lower with the 10 year down -4.5 basis points ahead 4.883%. Recall to extend the high price reached 5.36%. This article was written by Greg Michalowski at investinglive.com.