First reading above 50 since April 2023Prior was 49.5New orders increase slightly, but export orders continue to declineInput cost inflation accelerates to 17-month highOutput nearly stabilizes, employment rises marginallyFirms more optimistic on outlook, citing hopes for post-US election stability and lower interest ratesEmployment increased marginally
Commenting on the latest survey results, Paul Smith,
Economics Director at S&P Global Market Intelligence
said:
“The latest PMI data provided some encouraging signs
for the health of the manufacturing economy, with new
orders, employment and confidence in the outlook all
improving since August. Panellists pointed to slightly
better market demand at home as a factor underpinning
growth, which served to offset a further deterioration in
foreign sales.”Indeed, global demand remains subdued, in part linked
to geopolitical uncertainties and this continues to
bear down on production and buying activity. Firms are
therefore looking towards the forthcoming US elections
as an opportunity to see some much-needed stability,
whilst also noting that falling interest rates should help
to stimulate growth in the year ahead.”
Manufacturing has been struggling for awhile but rate cuts and stimulus abroad should help.
This article was written by Adam Button at www.forexlive.com.
