Textile Mills Lead US Manufacturing New Orders as PMI Hits 55.5%

US textile mills led all manufacturing industries in new order growth during October, as the Institute for Supply Management's Manufacturing PMI registered 55.5 percent, 1 percentage point above September's reading. The figure marks 24 consecutive months of economic expansion; any PMI above 47.5 percent signals growth.

ISM released the data Monday. Textile mills ranked among the 12 manufacturing industries reporting growth in October, alongside electrical equipment, appliances, machinery, computers, metals, transportation equipment, furniture, chemicals and food, tobacco and beverages.

The sector's performance stands out on order books. Textile mills topped a field of 11 other industries for reported growth in new orders. They placed fourth among 11 industries for production growth.

What does the PMI breakdown show?

Four of the five subindexes that make up the PMI grew faster than the previous month: New Orders, Production, Supplier Deliveries and Inventories. Employment growth slowed by 0.3 percentage point.

"Of the five subindexes that make up the PMI, four (New Orders, Production, Supplier Deliveries and Inventories) grew faster than the previous month, while Employment growth slowed down by 0.3 percentage point," wrote Susan Spence, chair of the ISM Manufacturing Business Survey Committee.

New orders rose for the 10th consecutive month, hitting 55.5 percent in October against 55.3 percent in September. The Production Index reached 59 percent, up 2.3 points and the highest rate recorded since November 2021. The Prices Index reached 75.2 percent, a 2.7 percentage point decrease from September. Order backlogs registered 54.6 percent, down 1.8 points from the prior month.

How strong is the textile-specific detail?

The textile sector was one of just two industries — the other being paper products — reporting that supplier deliveries were faster in October. Faster deliveries matter for downstream sewn-products manufacturers balancing lead times.

The data carries caution flags. Textiles was one of seven industries, out of 18 assessed, that reported higher inventories for the month. It was among 16 industries that reported raising prices. Despite carrying higher inventory, textile mills ranked No. 1 among 11 industries reporting order backlogs.

Backlogs at the top of the industry table cut both ways: they signal demand outpacing throughput, but they also tie up working capital.

Why is sentiment deteriorating despite growth?

General sentiment worsened for the third consecutive month. Only 34 percent of respondent comments fell in the positive range; 66 percent registered negative. Respondents citing a pessimistic outlook pointed to pricing volatility (62 percent), longer lead times (41 percent), tariffs (25 percent) and the Iran war (21 percent), with most mentioning multiple factors.

Spence said ISM was "encouraged with new orders, new export orders and production continuing to improve" during a Monday conference call, but conceded: "we're sensitive to the loss of growth in employment and the backlog drop, as well as the continued pricing volatility. So, you get the increase in negativity."

ISM research manager and PMI reports analyst Kristina Cahill warned that "the current chasm between Manufacturing PMI data and sentiment could be as wide and lasting as ever," according to ISM's blog.

Inputs — defined by ISM as supplier deliveries, inventories, prices and imports — were mixed. The Supplier Deliveries Index rose 0.1 percentage point. The Inventories Index grew 2.8 percent, re-entering expansion territory. The Prices Index fell 2.7 percentage points. The Imports Index climbed 1.9 percentage points to 52.9 percent from September.

What do the tariff signals mean for sourcing?

ISM did not publish responses from textile mills directly, but manufacturer comments elsewhere in the survey outline pressures US producers share. "Economic policies coming out of Washington continue to weigh on business conditions. Customers are unwilling to make commitments to anything other than the shortest term due to the vast uncertainty," one fabricated metal products manufacturer said.

The same respondent added: "Canadian tariffs continue to damage small U.S. businesses selling into that important market."

A metals producer noted election-year dynamics. "Though not a presidential election, the election-year dynamic has begun to take hold a bit. Canadian tariffs continue to have a negative impact on steel," they said. "Material shortages abound. Fuel remains high. Uncertainty remains constant."

The comment lands directly on the textile supply chain. The North American textile and sewn-products supply chain spans the US and Canada, and US textile producers have voiced growing concern in recent months about whether steep new tariffs will let the industry keep operating collaboratively.

For sourcing teams, the October data cuts one way on demand — mills hold the strongest order books in manufacturing — and another on cost and planning: prices remain elevated near 75 percent, inventories are building, and buyers are resisting commitments beyond the shortest terms. Suppliers and their customers should expect tougher renegotiation on lead times and pricing clauses as tariff uncertainty persists.