Markit’s Flash PMI released this morning shows that the US manufacturing sector grew at its weakest pace for a year in October. The index fell to 51.1 from 52.8 in September. While the headline number still indicated expansion, though at a slower rate, Output index fell to 49.5 (indicating contraction).
Manufacturing output fell for the first time in more than four years. Further. New Orders index was down at 51.6 from 52.2 in September. According to Markit. many manufacturers linked lower levels of output to a weaker trend for new orders.
The Chief Economist of Markit commented “the flash PMI provides the first insight into how business fared against the backdrop of the government shutdown in October, and suggests that the disruptions and uncertainty caused by the crisis hit companies hard”.
Across the pond, Euro-zone manufacturing PMI rose to 51.3 from 51.1 in September. But the composite PMI fell to 51.5 from 52.2, due to weakness in services.
On the other hand, China’s manufacturing activity was at a seven-month high. The flash PMI reading came in at 50.9 from 50.2 in September, driven mainly by strong new orders.
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