Economy

Economic Data Roundup (10/24/2016)

10/24/16 12:00 PM

iStock_000009946822_Small.jpgThe only important economic data released this morning was a report on national manufacturing activity from IHS Markit. Specifically, the research firms’ manufacturing purchasing managers' index (PMI) rose to 53.2 in the first half of October, the best headline reading in twelve months and a much stronger rebound than economists had anticipated. The large gain was helped by improvements in output and new order growth, both of which climbed to 1-year highs last month. Survey respondents also reported the fastest expansion in input buying since June of last year, and pre-production inventories lifted for the first time in eleven months. Managers said that such increases in production and purchasing activity reflected “hopes of a post-election upturn in client demand.” As for the negatives, export sales remained sluggish in October and job creation softened. Inflation pressures also appeared to have firmed last month as surveyed manufacturers indicated that the latest increase in input prices was the fastest in almost two years. Overall, though, this was an encouraging report which hints at a strong start to the fourth quarter for U.S. manufacturing activity. However, IHS Markit’s chief business economist Chris Williamson cautioned that there seems to be an “ongoing dependency on domestic demand and a need to keep labor costs low amid a still-uncertain economic and political outlook.”

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Sources: Econoday, IHS Markit

Post author: Charles Couch