- Chris Williamson, chief economist at Markit
US manufacturing activity unexpectedly rose to the highest level in five month in October, suggesting possible improvement in the sector, which is suffering from a strong US Dollar and sluggish global demand. According to the data provider Markit, the US flash purchasing managers' index climbed to 54.0 from 53.1 last month, which was close to the lowest level in two years. The robust start to the final quarter of the year indicates the world's number one economy may be gathering speed again after slowing in the three months through September, for which the PMI surveys estimated annualized GDP growth of 2.2%. The faster growth of export sales is particularly good news and will help to fan fears that the US economy is being hurt by the stronger Dollar and slower growth in China.
At the same time, Americans' expectations for the economy deteriorated to a 13-month low in October. The monthly measure tracking the economic outlook declined to 42 from a September reading of 44.5, according to the Bloomberg Consumer Comfort Index. Some 39% of respondents said the US economy was deteriorating, up from 36% in September. In contrast, 23% said it was improving, the smallest number in 13 months.
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