US PMI Manufacturing rose to 53.5 in September, up from 53.1, hitting a 20-month high. However, PMI services dropped slightly to 54.6, down form 55.0. PMI Composite also dropped slightly to 54.4, down from 54.6.
Chris Williamson, Chief Business Economist at IHS Markit, said:
“US businesses reported a solid end to the third quarter, with demand growing at a steepening rate to fuel a further recovery of output and employment.
“The survey data therefore add to signs that the economy will have enjoyed a solid rebound in the third quarter after the second quarter slump.
“The question now turns to whether the economy’s strong performance can be sustained into the fourth quarter. Covid-19 infection rates remain a major concern and social distancing measures continue to act as a dampener on the overall pace of expansion, notably in consumer-facing services. Uncertainty regarding the presidential election has also intensified, cooling business optimism about the year ahead. Risks therefore seem tilted to the downside for the coming months, as businesses await clarity with respect to both the path of the pandemic and the election.”
