U.S. manufacturing strengthened in October, with the Institute for Supply Management’s manufacturing PMI rising to 55.5 and marking a tenth straight month of expansion; its production index reached 59, the highest since November 2021.

S&P Global’s manufacturing PMI, by contrast, eased to 54.9 from September’s 55.9, but the firm said growth remained comfortably above trend and represented the sector’s strongest stretch since early 2022.

Victoria Bloom, chief economist for the National Association of Manufacturers, said the surveys differed on whether growth accelerated or softened because they use different methods, but both pointed to continued manufacturing strength.

These PMIs are diffusion indexes that track how broadly conditions change among survey respondents, not direct measures of factory output or inflation.

The ISM survey showed all five major subindexes—new orders, production, employment, supplier deliveries and inventories—in expansion, as were five of the six largest manufacturing industries.

Factories hired at their fastest pace in five and a half years as backlogs grew, although production and new orders continued to rise more slowly than before.

S&P Global said factories were struggling to meet demand, particularly for AI-related goods and equipment, while shipping and logistics disruptions pushed delivery delays to their widest reach since 2022.

The ISM Supplier Deliveries Index edged up to 59.1 from 59.0, indicating slower deliveries as strong demand strained suppliers.

The ISM prices index eased to 75.2 from 77.9, showing that raw-material price increases had become less widespread, but prices had still risen for 25 consecutive months and costs remained elevated.

S&P Global economist Chris Williamson warned that manufacturers were passing more higher costs on to customers, potentially pushing consumer prices higher and keeping inflation above the Federal Reserve’s target.

The Federal Reserve held its target range at 3.75%–4% on October 28, citing strong economic activity and elevated inflation; the 10–2 vote included Lisa D. Cook and Beth M. Hammack, who preferred a quarter-point increase.

With growth strong and cost pressures unresolved, the Federal Reserve’s future policy is expected to put greater emphasis on price stability than on growth.