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Friday, November 01, 2013

Markit PMI shows "modest" manufacturing expansion in October

by Calculated Risk on 11/01/2013 09:00:00 AM

The Markit PMI is at 51.8 (above 50 is expansion). This was down from 52.8 in September, and up from the October flash reading of 51.1.

From MarkIt: PMI at one-year low, as output growth eases sharply

The U.S. manufacturing sector grew at its slowest rate for a year in October, according to the final Markit U.S. Manufacturing Purchasing Managers’ Index™ (PMI™). At 51.8, down from 52.8 in September, but above the earlier flash estimate of 51.1, the PMI suggested that the rate of expansion was only modest.
Manufacturing employment in the U.S. rose for the fourth consecutive month in October. Overall, the rate of job creation accelerated to a moderate pace, but was nonetheless weaker than at the start of the year.

“While better than the earlier flash reading, the final PMI data indicate that the U.S. manufacturing sector ground to a near standstill in October. [said Chris Williamson, Chief Economist at Markit]

Encouragingly, it looks like companies are expecting the slowdown to be temporary, most likely linked to the government shutdown, as indicated by an upturn in the rate of job creation."
emphasis added
The ISM PMI for October will be released at 10 AM ET today.