*SCALPSWINGSTRADDLE*

[Zephyr]

PMI Manufacturing Index
Released On 11/3/2014 9:45:00 AM For Oct, 2014
Prior Consensus Consensus Range Actual
Level 57.5 56.1 56.0 to 57.8 55.9
Highlights
October was a soft month for Markit's US manufacturing sample where the composite index slowed to 55.9, down from 56.2 at mid-month and down sizably from 57.5 in final September. The comparison with September points to slowing growth for October's manufacturing activity.

Weighing the most on the composite is the most important reading of all, in new business where monthly growth slowed to its lowest rate since the severe weather of this year's January. The report cites especially soft growth in export sales and notes the slowest increase in total backlog orders since January.

Production was also the slowest since January while, however, on the plus side is what the report describes as "robust" job growth, the result of rising business investment, new products, and confidence in the economic outlook.

Other readings include sharp moderation in input costs tied to the drop in oil prices. Output prices also slowed.

This report will confirm expectations for slowing in the upcoming ISM report which is expected to come in at 56.0 vs 56.6 in September. Anecdotal surveys on the manufacturing sector, like those from Markit and the ISM, have generally been tracking at greater rates of growth than the actual hard data on the sector. If that pattern holds, then this report, together with the net result of this month's reports from the regional Feds, suggests that manufacturing may be stalling a bit, at least during October.