Manufacturing Activity Beats Expectations

Business activity increased in October, while manufacturing activity declined—albeit at the slowest pace since August (Reuters).

What’s going on: “S&P Global said on Thursday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to 54.3 this month from a final reading of 54.0 in September.”

The S&P Global Flash U.S. Manufacturing PMI, however, came in at 47.8, up slightly from September’s 47.3 but still below 50, the number indicating expansion.
Still, activity beat expectations, as Reuters-polled economists had forecast the flash manufacturing PMI coming in at 47.5.

The big picture: “October’s flash U.S. PMI survey signaled a further solid rise in business activity to mark a robust start to the fourth quarter,” according to an S&P Global press release. “Growth was driven solely by the service sector, however, as manufacturing output contracted for a third month running.”