Manufacturing PMI Report Shows Solid Rates Of Growth

Most measures of the U.S. factory sector are in contraction or, like the upcoming ISM report, in near contraction, but not the manufacturing PMI which continues to post solid rates of growth. In the best reading since April, the PMI came in at 54.1 for final October for a 1 tenth gain from the flash reading and a very definitive 1.0 point gain from September.

Output is described as "robust" while new orders are accelerating as are, in what is a real contrast with other manufacturing reports, backlog orders where the build is contributing to strength in the sample's employment. Delivery times are up, which is another indication of strength. Input prices are down sharply while finished goods prices are fractionally higher.

This report, though on its own in terms of direction, at least has been consistent, never coming close to contraction over a year of actual contraction.

Recent History Of This Indicator;
The manufacturing PMI stands in direct contrast with the sweep of Federal Reserve regional surveys. At 54.0, the manufacturing PMI flash for October posted its best reading since May. New orders were at a 7-month high as was production. Regional Fed surveys have instead been showing wide contraction. Little change is expected for the final PMI, at 54.1.