US Factory Activity Growth at 6-Month High

The IHS Markit US Manufacturing PMI rose to 51.5 in October 2019 from 51.1 in the previous month and beating market expectations of 50.7, a preliminary estimate showed. The latest reading pointed to the strongest expansion in factory activity since April, as output, new orders and employment increased at a faster pace.

October data also pointed to an increase in new export sales for the first time in four months. Stronger demand encouraged a marginal rebound in input buying, but inventory volumes were depleted again. 

Meanwhile, factory gate charges decreased for the first time since September 2016. Manufacturers commented on softer cost pressures and efforts to stimulate sales by price discounting. 

Business confidence in the manufacturing sector picked up for the second month running and was the highest since June. A number of firms cited stronger order books and hopes of a recovery in global trade conditions. Comments from manufacturers in the automotive sector were the main exception, with respondents often noting concerns about the demand outlook in domestic and export markets

US Factory Activity Growth at 6-Month High

Markit Economics | Stefanie Moya |
10/24/2019 1:53:27 PM