Global Manufacturing PMIs

Chinese Official PMI slid to 50.8 vs. (E) 51.2.
German Manufacturing PMI was 51.4 vs. (E) 51.8.
U.S. ISM Manufacturing PMI rose to 59.0 vs. (E) 56.0.

Takeaway

Although slightly disappointing, the final October manufacturing PMIs generally supported the fact that global economic growth wasn’t as bad as feared in October.

Importantly, while the Chinese, German and EMU PMIs declined slightly vs. expectations, they all stayed above 50—implying the global manufacturing recovery is still ongoing. That’s enough to keep the worries about global growth at bay for the next few weeks.

Here in the U.S., the manufacturing sector remains at the forefront of domestic economic growth. The headline was a beat and the details of the report were also strong, with New Orders rising 5.8 percentage points m/m to 65.8 in October while the Employment component also increased by 0.9% to 55.5%.

Oddly, though, there was a divergence between the ISM number and the private firm Markit manufacturing PMI (they both produce manufacturing PMIs). The Markit number declined to a 3-month low of 55.9, missing estimates of 56.1. But, both reports did indicate solid growth in the manufacturing sector, with indices remaining well above the expansion threshold level of 50. Bottom line is the divergence is a bit odd but doesn’t undermine the data, as the manufacturing sector is in good shape and will continue to support the market. If anything, the divergence just made the November report a bit more interesting.

Global Manufacturing PMIs

Address

Email

Phone