U.S. PMI in October was 53.4, up slightly from September’s 53.2 in line with the flash estimate of 53.3, representing the sharpest rise since November 2019, according to HIS Markit press release. The rise in PMI stemmed from faster expansions in output and new order growths during the month despite contractions in export orders.
- The economic expansion is expected to weaken after the surge in Q3, but the strength of the PMI hints at a recovery in which the underlying trend continues to strengthen at the start of Q4-Chris Williamson, Chief Business Economist, HIS Markit.
- October PMI data signals an improvement in the health of the U.S. manufacturing sector.
- Input prices rose at the fastest rate since the start of 2019 due to supplier shortages, but average charges rose modestly.
- Business expectations remained positive in October, up from September;’s four-month low as firms foresee output rises in the coming year.
- Signs of reduced pressure on capacity led to a slower rise in employment, with business confidence historically subdued despite picking up compared to September.
U.S. stocks and the dollar are gaining. SPY is up 1.05%, EURUSD is down 0.05%
