US PMI Manufacturing rose 0.1 to 53.3 in October, matched expectation. PMI services also rose to 56.0, up from 54.6, beat expectation of 54.5. PMI Composite rose to 55.5, up from 54.3, hit a 20-month high.
Chris Williamson, Chief Business Economist at IHS Markit, said:
“The US economy looks to have started the fourth quarter on a strong footing, with business activity growing at a rate not seen since early 2019. The service sector led the expansion as increasing numbers of companies adapted to life with COVID-19, while manufacturing continued to report solid growth amid rising demand from households and businesses.
“A slowdown in hiring and weaker new order inflows were in part attributable to hesitancy in decision making ahead of the presidential election. More encouragingly, business optimism surged higher, indicating that firms have become increasingly positive about prospects for the coming year amid hopes of renewed stimulus, COVID-19 containment measures gradually easing and greater certainty for businesses and households after the presidential elections.”
