US manufacturing PMI improves remarkably in Oct: Markit

According to a flash purchasing managers’ index (PMI) released by Markit Economics, manufacturing in the US improved remarkably in October due to strong output and growth in new business after declining to a 3-month low in September.

The October manufacturing PMI increased to a reading of 53.2 in October following a reading of 51.5 in September, exceeding economists’ initial estimates, which called for a reading of 51.5 in a survey by Thomson Reuters. Any reading above 50 indicates an expansion.

Manufacturers in the US stated that the growth was supported by domestic economic conditions and it contributed to removing the negative effects of stagnant export sales in October.

“Manufacturing showed further signs of pulling out of the malaise seen earlier in the year, starting the fourth quarter on a solid footing. Both output and new orders are rising at the fastest rates for a year amid increasingly widespread optimism that demand will pick up again after the presidential election, which has been commonly cited as a key factor that has subdued spending and investment in recent months,” Chief Business Economist at IHS Markit, Chris Williamson stated.