Markit: Manufacturing Flash Index Shows Slowing Growth

Early readings manufacturing activity point to slowing for October, including today's PMI manufacturing flash index which eased to 56.2, down tangibly from September's final 57.5 reading and compared against a 57.9 flash for mid-month September. The greatest slowing in the month is in the most important component as new business growth is described as much weaker than September and the slowest in 3 months (greater detail is not provided to the public). The report notes significant slowing in growth for export orders.

Among other readings, employment growth held steady and strong at a 2-1/2 year high though output slowed in the month. And the slowing in output contributed to a rise in raw material inventories to the highest level in the 7-1/2 year history of the sample. Inflation readings for both raw materials and finished goods slowed to multi-month lows.

Today's report is in line with slightly less slowing in last week's Philly Fed report and much greater slowing in last week's Empire State report. September proved an exceptionally strong month for manufacturing and is proving a difficult comparison for October.

Recent History Of This Indicator:
The Markit PMI manufacturing index (final) posted strong and steady growth in September, at 57.5 which was down only marginally from 57.9 in both the mid-month flash reading and final August reading. Details were not provided to the public but the report described rates of output and new order growth as strong. Employment was also a standout in the report, posting a 2-1/2 year high. Most inflationary readings in various reports have been muted, but not in this report where both input and output prices showed their sharpest rise since December 2013. Other details included a rise in new export orders to a 3-year high.