S&P Global US manufacturing PMI ticks up in October, as expected

(Sharecast News) - Manufacturing conditions in the US stabilised in October, according to a survey released on Wednesday. The seasonally-adjusted S&P Global manufacturing purchasing managers' index rose to 50.0 from 49.8 in September, in line with the flash estimate. This marked the highest level since April.

A level above 50.0 indicates expansion, while a reading below signals contraction.

The survey found there was a renewed rise in new sales at goods producers, with new orders up for the first time in six months, and at the fastest pace since September 2022.

Siân Jones, principal economist at S&P Global Market Intelligence, said: "October PMI data signalled a stabilisation of US manufacturing conditions amid a renewed rise in new order inflows and firmer output growth.

"Demand conditions reportedly showed signs of improvement as customer interest revived, but this was once again largely focused on the domestic market as new export orders fell at a quicker rate.

"Of concern were reports of dwindling backlogs of work, previously used to help support production, as firms also revised down their expectations for future output to the lowest in 2023 so far. At the same time, manufacturers cut employment for the first time in over three years as workloads were reportedly insufficient to warrant additional hiring or the replacement of voluntary leavers."