The S&P Global Flash U.S. Manufacturing PMI dipped slightly this month. NAM Chief Economist Chad Moutray broke down the data for us.
Topline numbers: “The S&P Global Flash U.S. Manufacturing PMI contracted ever so slightly, down from 52.0 in September to 49.9 in October, falling into negative territory for the first time since June 2020,” said Moutray.
Under the hood: “New orders (down from 51.1 to 46.7) and exports (down from 47.6 to 44.0) pulled the headline index lower, along with softer growth for employment (down from 53.8 to 51.8) and future output (down from 65.9 to 56.2),” said Moutray.
Challenges ease: “Raw material costs (down from 65.2 to 63.9) grew in October at the slowest pace since November 2020 but remained elevated,” said Moutray. “Likewise, the index for supplier delivery times (up from 43.1 to 46.0) was the highest since July 2020, a sign that bottlenecks continue to improve.”
Across the pond: “Meanwhile, the S&P Global Flash Eurozone Manufacturing PMI contracted for the fourth straight month, declining from 48.4 in September to 46.6 in October, the lowest reading since May 2020,” said Moutray.
- “European growth continues to be negatively impacted by the Russian invasion of Ukraine, with soaring costs and a weakening outlook for production,” said Moutray.
- “In October, new orders, exports, output and future output deteriorated sharply, with post-pandemic lows for all four measures.”