US manufacturing new business growth eases to nine-month low
October data highlighted a slowdown in the ongoing U.S. manufacturing sector recovery, with output and new business growth both moderating during the latest survey period. Manufacturers pointed to a weaker contribution from export sales in October, but job creation remained resilient. Meanwhile, input cost inflation was the weakest since April and factory gate charges rose at a slower pace.
Commenting on the final PMI data, Tim Moore, Senior Economist at Markit said:
"October's survey highlights that the revival in U.S. manufacturing conditions remains on track. Production levels expanded at an impressive rate by international standards and overall momentum is still stronger than the post-recession trend.
"However, the latest figures indicate that the recovery has lost some intensity at the start of the fourth quarter, reflecting subdued export demand from the euro area and key emerging markets.
"Meanwhile, a solid rate of manufacturing job creation was sustained in October, which provides an early indication that domestic labour market conditions have continued to strengthen through the final quarter of the year."
Tim Moore | Economics Associate Director, IHS Markit
Tel: +44 149-146-1067
tim.moore@ihsmarkit.com