Manufacturing sector marks 10 straight months of growth ahead of midterms

U.S. manufacturing activity expanded slightly in October, marking 10 straight months of growth leading into the midterms.

The manufacturing purchasing managers’ index (PMI) was 55.5 percent last month, up from 54.5 percent in September, the Institute for Supply Management (ISM) reported Monday.

Four of the five subindexes that make up the PMI increased from September, as new orders, production, supplier deliveries and inventories rose last month. 

Employment growth, meanwhile, slowed by 0.3 percentage points in October. General sentiment also declined for the third straight month, as 66 percent of comments the ISM received were negative.

Persistent inflation stemming from the Iran war and President Trump’s tariffs has hampered the manufacturing industry.

Energy prices rose by 5.2 percent from August to September and were up 20.4 percent year over year, according to the consumer price index.

Energy commodity prices in September were up 9.3 percent from August and 35.3 percent from September 2025. 

Trump has long pledged to revive the American manufacturing sector, arguing his tariffs will compel companies to reshore jobs in the U.S. 

But the sector has shrunk slightly from roughly 12.67 million employees at the start of the president’s second term to about 12.65 million in September, according to data from the Bureau of Labor Statistics and the Federal Reserve Bank of St. Louis.

The president recently announced Audi will construct a new factory in Georgia, the company’s first U.S. production facility. Through the $4 billion investment, the automaker will create 4,500 jobs, Audi said in an Oct. 25 release.

Multiple Senate races in manufacturing-heavy states, including Michigan, Ohio and Texas, will be crucial in determining the balance of power in the upper chamber. Democrats need to flip a net of four seats to take control of the Senate.