Weighing the most on the composite is the most important reading of all, in new business where monthly growth slowed to its lowest rate since the severe weather of this year's January. The report cites especially soft growth in export sales and notes the slowest increase in total backlog orders since January.
Production was also the slowest since January while, however, on the plus side is what the report describes as "robust" job growth, the result of rising business investment, new products, and confidence in the economic outlook.
Other readings include sharp moderation in input costs tied to the drop in oil prices. Output prices also slowed.
Anecdotal surveys on the manufacturing sector, like those from Markit and the ISM, have generally been tracking at greater rates of growth than the actual hard data on the sector. If that pattern holds, then this report, together with the net result of this month's reports from the regional Feds, suggests that manufacturing may be stalling a bit, at least during October.
Recent History Of This Indicator:
The Markit PMI manufacturing flash index in October 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 was 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 noted significant slowing in growth for export orders.
The Markit PMI manufacturing flash index in October 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 was 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 noted significant slowing in growth for export orders.
...meanwhile...
The
ISM report stands out starkly from the net result of other anecdotal
surveys of October's manufacturing sector, showing outstanding growth at
a composite index of 59.0 vs 56.6 in September. This level matches
August's level with the two the strongest since February 2011.
New orders, the most important reading in the report, rose a strong 5.8 points to a blistering 65.8. This points to rising activity across the supply chain in the months ahead. Export orders slowed in the month, as they did for Markit's sample released earlier this morning, and implies that domestic demand is especially strong. In two signs of strength, total backlog orders rose while supplier deliveries, reflecting ongoing congestion in the supply chain, slowed.
Production, at 64.8, is strong and in line with orders. Inventories show slight accumulation. Price pressures moderated as they have in most reports this month, the result of lower oil prices.
This report, though very strong, hasn't been tracking well with hard data on the manufacturing sector where growth has been flat.
New orders, the most important reading in the report, rose a strong 5.8 points to a blistering 65.8. This points to rising activity across the supply chain in the months ahead. Export orders slowed in the month, as they did for Markit's sample released earlier this morning, and implies that domestic demand is especially strong. In two signs of strength, total backlog orders rose while supplier deliveries, reflecting ongoing congestion in the supply chain, slowed.
Production, at 64.8, is strong and in line with orders. Inventories show slight accumulation. Price pressures moderated as they have in most reports this month, the result of lower oil prices.
This report, though very strong, hasn't been tracking well with hard data on the manufacturing sector where growth has been flat.
Recent History Of This Indicator:
The composite index from the ISM manufacturing survey for September slowed but nevertheless remained solid for the ISM manufacturing sample where the headline index fell 2.4 points to 56.6. Growth in new orders slowed noticeably, down 6.7 points from August, but was still very strong at 60.0. Backlog orders, however, fell into contraction, down 5.5 points to 47.0. A plus in the report was a fractional uptick in production to 64.6, the likely result of working down backlog. The solid rate of production was an important plus in this report that pointed to a solid gain for the manufacturing component of the industrial production report.
The composite index from the ISM manufacturing survey for September slowed but nevertheless remained solid for the ISM manufacturing sample where the headline index fell 2.4 points to 56.6. Growth in new orders slowed noticeably, down 6.7 points from August, but was still very strong at 60.0. Backlog orders, however, fell into contraction, down 5.5 points to 47.0. A plus in the report was a fractional uptick in production to 64.6, the likely result of working down backlog. The solid rate of production was an important plus in this report that pointed to a solid gain for the manufacturing component of the industrial production report.
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