2023-10-24 14:59:47
S&P Global announced on the 24th that the preliminary Purchasing Managers’ Index (PMI) for October, which combines the US manufacturing and service industries, has increased from the previous month. A recovery in demand in the manufacturing industry and a slowdown in inflation in the services sector contributed.
Key Points Composite PMI preliminary report rises to 51 – Highest level in three months. Median economist forecast is 50. Previous month was 50.2. Manufacturing PMI rises to 50 (49.8 in the previous month) – Expected 49.5. Service sector PMI is 50.9 (50.1 in the previous month). Rising – Expected 49.9 Index with 50 marking the boundary between expansion and contraction in activity
In the Composite PMI, the sales price index fell to the lowest level in three years. This is against the backdrop of a receding inflationary pressure in the service industry.
“Improving conditions in October should increase expectations for a soft landing for the U.S. economy,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “The PMI sales price index is close to its long-term pre-pandemic average, consistent with our view that headline inflation will decline towards the Fed’s 2% target in the coming months,” he said. Ta.
Cost pressures increased in manufacturing. The increase in prices of petroleum and petroleum-related products had an impact.
Employment continues to increase in the service industry. But the pace slowed. On the other hand, employment in the manufacturing industry decreased. Many companies report not filling positions left open due to voluntary turnover. This is due to uncertainties regarding the future and cost-cutting efforts. The manufacturing employment index fell below 50 for the first time since mid-2020.
The results showed that companies are becoming more optimistic about the future. The index showing the outlook for business was at its highest level since May 2022.
news-rsf-original-reference paywall">Original title:Business Activity Gains Momentum as US Inflation Gauges Cool(excerpt)
US Oct. Flash Composite PMI 51 vs 50.2
US Oct. Flash Manufacturing PMI 50; Est 49.5
US Oct. Services Flash PMI 50.9; Est. 49.9
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