Following up on the heels of Friday's stronger than expected ISM Manufacturing report, Tuesday's release of the non-manufacturing ISM index also came in ahead of expectations. While economists were expecting the October headline reading to come in at a level of 54.0, the actual reading came in at 55.4. This represents a one point increase from September's level of 54.4. With both the manufacturing and non-manufacturing indices having been released, we can see that the combined composite PMI (bottom chart) for October also increased from 54.6 to 55.5.
The table below breaks out the one month and one year changes in the ISM index and each of its subcomponents. Unlike last month, where every component was at or above 50, this month Supplier Deliveries fell from 50 to 49. Of the ten components shown, only four increased this month, while six declined. Compared to one year ago, 'breadth' in the components was more positive as seven increased and just three declined. With the October employment report on the calendar for Friday, economists looking for clues as to how the report will play out, the fact that the Employment component saw one of the largest increases relative to last month is a positive.