- Markit
Manufacturing activity in the world's biggest economy unexpectedly rose in October and automobiles sales were robust, alleviating concerns of a moderation in economic growth in the final quarter of the year. The Institute for Supply Management's index of the US factory activity jumped to 59 last month, up from 56.6 in September, with any reading above 50-mark threshold indicating expansion in the sector. Predictions were for the October reading to come in at 56.1, compared with 56.6 in September. American manufacturers reported acceleration in new orders last month, while production increased to the highest level since May 2004. The data suggest the American economy is expanding at above a 3% annualized pace at the start of the fourth quarter following a 3.5% growth in the third quarter.
The ISM PMI report also came on heels of the latest US manufacturing PMI from Markit Economics, which in contrast showed manufacturing activity slowed to the lowest since July. Markit's US manufacturing PMI reading for October came in at 55.9, against expectations for the reading to be flat from the preliminary figure of 56.2. Still, the indicator stayed firmly in the expansion zone. It has not fallen beneath the 50-mark since data began to be compiled in May 2012. The index, however, soared in August, as it hit its 53-month high of 57.9.
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