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US Factory Growth at Fresh 6-Year High
The IHS Markit US Manufacturing PMI was revised higher to 57.1 in December of 2020 from a preliminary of 56.5 and 56.7 in November. The reading pointed to the strongest growth in factory activity since September of 2014 as the economy continues to recover from the coronavirus-hit. Production growth remained marked and was the strongest since March of 2015 despite easing slightly from November's recent high. Similarly, new orders softened due to supplier delays and reduced capacity as additional coronavirus restrictions had led to order cancellations. Also, amid a significant deterioration in vendor performance, cost burdens and selling prices soared, as firms sought to partially pass on higher input prices. Output expectations moderated slightly, however, as the post-election spike eased and virus cases surged once again.
Published on 2021-01-04

US Factory Growth Remains Robust: Markit
The IHS Markit US Manufacturing PMI was little changed at 56.5 in December of 2020 from 56.7 in November, beating market forecasts of 55.7, flash estimates showed. The reading pointed to the second-fastest improvement in operating conditions since April of 2018, amid strong output and new orders growth. However, vendor performance posted the greatest deterioration in ever as supplier delivery times were extended following severe raw material shortages and supplier capacity and logistical constraints. Input costs increased further and at the sharpest rate since April 2018. Firms were able to partially pass-on higher costs to clients, however, as selling prices rose at the steepest pace since April 2011. At the same time, goods producers increased workforce numbers at a faster pace amid another monthly rise in backlogs of work. Encouragingly, manufacturers were historically upbeat regarding the outlook for output over the coming year.
Published on 2020-12-16

US Manufacturing PMI Confirmed at Near 6-Year High: Markit
The IHS Markit US Manufacturing PMI was confirmed at 56.7 in November of 2020, the same as in the preliminary estimate and pointing to the strongest factory growth since September of 2014. Overall growth was supported by faster upturns in output and new orders amid stronger domestic and foreign client demand. Employment rose only marginally, however, and pressure on capacity was exacerbated by near-survey record supply chain delays and input shortages. Despite short-term uncertainty reflected in slower hiring, firms were the most confident regarding the outlook for output over the coming year in almost six years. On the price front, input prices increased markedly and output charges rose at the fastest pace for over two years as firms sought to pass these higher costs on to customers.
Published on 2020-12-01

US Factory Growth Strongest in Over 6 Years
The IHS/Markit US Manufacturing PMI jumped to 56.7 in November of 2020 from 53.4 in October, beating market forecasts of 53, flash estimates showed. The reading pointed to the strongest expansion in factory activity since September of 2014, amid a marked rise in output, largely driven by a notable uptick in new business as demand conditions improved. Moreover, the rise in production was the fastest since March 2015 and new export orders also rebounded but job creation slowed despite the strongest rise in backlogs of work since August of 2014. The rate of input price inflation picked up to the fastest since October of 2018, as demand for inputs increased once again and amid a record-breaking deterioration in vendor performance. Higher supplier prices were passed on to clients in part, however, through the sharpest rise in charges for over two years. Finally, business confidence soared to the strongest since February of 2015.
Published on 2020-11-23

US Manufacturing PMI Revised Slightly Higher: Markit
The IHS Markit US Manufacturing PMI was revised higher to 53.4 in October of 2020 from a preliminary estimate of 53.3. The reading pointed to the 4th consecutive month of growth in factory activity and the strongest since January of 2019, marking a further move away from April's nadir. Output growth was the sharpest since November of 2019, driven by stronger client demand and higher new order inflows. New order growth picked up due to more robust client demand, with some firms noting larger orders being placed. Although domestic demand ticked higher, new export orders fell for the first time since July due to reimposed coronavirus lockdown restrictions in Europe. Reflecting weaker pressure on capacity, firms increased their workforce numbers at a softer pace. Meanwhile, average cost burdens increased at the steepest rate since January of 2019. Business expectations remained positive, improving on September’s 4-month low, as firms foresee a rise in output over the coming year.
Published on 2020-11-02

US Factory Activity Strongest in Near 2 Years: Markit
The IHS Markit US Manufacturing PMI edged up to 53.3 in October of 2020 from 53.2 in September, preliminary estimates showed. The reading pointed to the fourth straight month of growth in factory activity and the strongest since January of 2019. Despite the rate of production growth slowing, the expansion in new orders accelerated and was the sharpest since January 2019. The upturn broadly stemmed from domestic clients as new export orders fell for the first time since July. Nonetheless, firms were better able to process new business inflows as the accumulation in backlogs of work eased to only a marginal rate. As such, manufacturers registered a slower rise in employment. Goods producers noted the increased use of discounting to attract clients during October, with selling prices rising only moderately. In contrast, cost burdens rose the steepest rate since January 2019 amid supplier shortages. Finally, manufacturers indicated greater confidence in the outlook for output.
Published on 2020-10-23

US Manufacturing PMI Revised Slightly Lower: Markit
The IHS Markit US Manufacturing PMI was revised lower to 53.2 in September of 2020 from a preliminary reading of 53.5. Still, it is the biggest expansion in factory activity since January of 2019, supported by a faster expansion in production and a solid rise in new orders. As a result, firms continued to broaden their workforce numbers, as hiring increased following further upward pressure on capacity. Meanwhile, cost burdens rose sharply once again, with selling prices increasing at the fastest rate since January 2019. Nonetheless, output expectations moderated in September amid increased uncertainty regarding the coronavirus pandemic and the upcoming presidential election.
Published on 2020-10-01

US Factory Activity Growth Beats Forecasts: Markit
The IHS Markit US Manufacturing PMI increased to 53.5 in September of 2020 from 53.1 in August, beating forecasts of 53.1. The reading pointed to the strongest expansion in factory activity since January of 2019, amid a further increase in new orders and the resumption of operations at clients, flash estimates showed. New business rose at a solid pace that was broadly similar to August’s 19-month high. The expansion in new export orders slowed, however, and was only marginal overall. Output charges rose at the fastest rate since January 2019. Goods producers registered a slower increase in backlogs of work in September as pressure on capacity eased. As such, firms expanded their workforce numbers at a slightly softer pace. Manufacturers were less confident of an increase in output over the coming 12 months in September amid operational difficulties and the ongoing COVID-19 pandemic.
Published on 2020-09-23

US Manufacturing PMI Revised Slightly Lower: Markit
The IHS Markit US Manufacturing PMI was revised lower to 53.1 in August of 2020 from a preliminary of 53.6. Still, the reading pointed to the strongest expansion in factory activity since January of 2019, following the easing of coronavirus restrictions and the reopening of large sections of the manufacturing sector. New orders increased the most since the start of 2019, due to stronger client demand and increased marketing. New export orders grew the most in four years, as companies registered the first upturn in foreign client demand in 2020 so far and output growth was the quickest since November 2019. At the same time, employment increased the first time since February. Meanwhile, input price inflation accelerated, amid raw material shortages and supplier price hikes. Finally, business confidence was the strongest since April of 2019 amid hopes of a return to stronger demand conditions and an end to the pandemic.
Published on 2020-09-01

US Factory Activity Rises the Most since January 2019
The IHS Markit US Manufacturing PMI increased to 53.6 in August of 2020 from 50.9 in July and beating market forecasts of 51.9, preliminary estimates showed. The reading pointed to the strongest increase in factory activity since January of 2019, driven by quicker expansions in output and new orders as the resumption of business operations and the reopening of clients had helped to boost sales. Firms also recorded the first rise in foreign client demand since December 2019. For the first time since February, manufacturers registered a rise in the level of work-in-hand in August. As a result, firms indicated a renewed uptick in employment. Meanwhile, the rate of input cost inflation was the fastest since January 2019. Manufacturers partially passed-on some of their costs to their clients through a solid rise in selling prices. Finally, business confidence picked up amid hopes that client demand will continue to increase as economies start to reopen.
Published on 2020-08-21

US Markit Manufacturing PMI Revised Lower
The IHS Markit US Manufacturing PMI was revised lower to 50.9 in July 2020 from a preliminary estimate of 51.3 and compared to June's final 49.8. Still, the latest figure signaled a marginal improvement in the performance of the US manufacturing sector, the first since February.
Published on 2020-08-03

US Factory Activity Rises Less than Expected
The IHS Markit US Manufacturing PMI increased to 51.3 in July of 2020 from 49.8 in June, below market forecasts of 51.5. The reading pointed to the first expansion in factory activity since February. Overall growth was driven by the first upturns in both output and new orders for five months. Firms noted that the rise in production was due to greater new business inflows. Some companies also stated that higher new orders stemmed from the gradual return of customers and stronger underlying demand. Workforce numbers in the manufacturing sector were broadly unchanged in July, as the rate of backlog depletion eased further. Although some firms noted the return of furloughed workers and the hiring of new employees, others remained cautious due to historically muted demand conditions and the ongoing uncertainty surrounding the pandemic. Nonetheless, output expectations strengthened to the highest since February amid hopes of a recovery once the pandemic situation improves.
Published on 2020-07-24

US Markit Manufacturing PMI Revised Higher
The IHS Markit US Manufacturing PMI was revised higher to 49.8 in June of 2020 from a preliminary of 49.6 and 39.8 in the previous month. The reading pointed to only a fractional deterioration in US manufacturing conditions as goods producers and their customers began to reopen amid looser restrictions following the coronavirus outbreak. The downward trend in production eased markedly as new orders stabilised amid reports of a relative improvement in demand conditions. Companies reported a further drop in workforce numbers as evidence of spare capacity remained, but the rate of job losses also moderated sharply. Optimism about the year ahead meanwhile revived considerably.
Published on 2020-07-01

US Manufacturing PMI Beats Forecasts
The IHS Markit Flah US Manufacturing PMI increased to 49.6 in June of 2020 from 39.8 in May, beating market forecasts of 48. The reading still pointed to a small contraction in factory activity although it was the lowest in three months as businesses began to reopen on a larger scale after the coronavirus lockdown. Output and new orders fell at a slower pace and job shedding eased in June while backlogs of work continued to be reduced sharply. Alongside a boost to business confidence, which was reportedly linked to hopes of a swift return to pre-pandemic new order volumes, firms began to increase their output charges in an effort to pass on higher cost burdens to clients. The increase in output prices was the first such rise since February.
Published on 2020-06-23

US Manufacturing PMI Unrevised in May: Markit
The IHS Markit US Manufacturing PMI came in at 39.8 in May of 2020, matching initial estimates and above a record low of 36.1 in April. Still, the reading pointed to the second-steepest deterioration in manufacturing operating conditions since April of 2009, largely driven by a further weakening of client demand and lower new order inflows from both domestic and foreign customers amid the coronavirus outbreak. Also, the fall in output was attributed to lower sales, temporary shutdowns and difficulties operating at full capacity amid new safety regulations; new business fell for the third month running due to the cancellation and postponement of orders; and firms cut their workforce numbers at the second-quickest rate in over 11 years; and output charges fell at a record pace. Finally, sentiment towards the outlook for output over the coming year was negative.
Published on 2020-06-01

US Factory Activity Shrinks for 3rd Month: PMI
The IHS Markit US Manufacturing PMI increased to 39.8 in May of 2020 from 36.1 in April which was a record low due to the coronavirus pandemic and restrictive measures imposed. The reading came above market expectations of 38, flash figures showed. However, it still pointed to a third straight month of falling factory activity amid significant contractions in production and new orders, as businesses slowly returned to work amid challenging domestic and foreign demand conditions. The rates of reduction were among the most marked since the depths of the 2009 financial crisis. However, Chris Williamson, Chief Business Economist at IHS Markit said that ‘encouragement comes from the survey indicating that the rate of economic collapse seems to have peaked in April. In the absence of a second wave of COVID-19 infections, the decline should moderate further in coming months as measures taken to contain the coronavirus are steadily lifted’.
Published on 2020-05-21

US Manufacturing PMI Revised Lower: Markit
The IHS Markit US Manufacturing PMI was revised lower to 36.1 in April 2020 from a preliminary estimate of 36.9, compared to March's final 48.5. The latest reading was the lowest since early 2009, as output, new orders and exports all fell at record rates due to measures implemented to contain the COVID-19 outbreak. At the same time, employment declined the most since March 2009 amid greater spare capacity, as backlogs of work decreased at the most marked rate for 11 years. On the price front, input costs fell amid lower demand for inputs and a notable decrease in fuel prices, while output charges declined the most since data collection began in May 2007.
Published on 2020-05-01

US Factory Activity Shrinks the Most in 11 Years: Markit
The IHS Markit US Manufacturing PMI fell to 36.9 in April of 2020 from 48.5 in March, below market expectations of 38. The reading pointed to the sharpest contraction in factory activity in 11 years amid the cancellation or postponement of both domestic and foreign orders following the coronavirus pandemic escalation, preliminary figures showed. Production shrank at a record pace; input costs and factory gate charges both fell at the fastest rates for over a decade; factory closures and stay-at-home orders led to a marked downturn in workforce numbers. Despite lower headcounts, firms were able to reduce their backlogs of work due to a substantial drop in new orders. Finally, confidence regarding the outlook for output over the coming year dropped to a fresh low, and was pessimistic for the first time since the series began in July 2012.
Published on 2020-04-23

US Manufacturing PMI Lowest since 2009: Markit
The IHS Markit US Manufacturing PMI was revised down to 48.5 in March of 2020 from a preliminary of 49.2 and below 50.7 in February. The reading pointed to the worst contraction in the manufacturing sector since August of 2009 amid weak domestic and foreign demand conditions following the outbreak of coronavirus. Output contracted solidly, dropping at the sharpest pace for over a decade as factories shutdown and client demand dropped sharply. New orders fell at the joint-fastest pace since June of 2009, commonly linked to demand slumping due to the virus, with firms also registering a solid downturn in new export orders. Manufacturers cut their workforce numbers at the sharpest rate since October of 2009 and input prices rose only slightly. Finally, fears surrounding the longevity of shutdowns and the slow recovery thereafter led to the lowest degree of confidence since data collection for the series began in July of 2012.
Published on 2020-04-01

US Markit Manufacturing PMI Above Forecasts
The IHS Markit US Manufacturing PMI edged down to 49.2 in March of 2020 from 50.7 in February, preliminary estimates showed. The reading pointed to the fastest deterioration in operating conditions since the depths of the financial crisis, although markets were expecting a much worse number (42.8). Figures were buoyed by longer supplier delivery times while steep rates of contraction were seen in production and new orders, both of which fell to the greatest extent since 2009, with many firms linking this to the escalation of preventative measures following the outbreak of COVID-19. Also, firms shed workers at a solid rate in March and input prices increased the least for almost three years. Finally, business confidence was at a record low level due to coronavirus uncertainty.
Published on 2020-03-24