PMI Manufacturing Index Flash
Released On 10/24/2013 8:58:00 AM For Oct, 2013
Prior Consensus Consensus Range Actual
Level 52.8 52.7 52.0 to 53.5 51.1
Highlights
Composite activity in the manufacturing sector has slowed this month according to Markit Economics' PMI flash index which is at 51.1 vs September's mid-month and final readings both of which were 52.8. The key component of the composite is new orders which likewise shows slowing, down about a point and a half to 51.6. Backlog orders rose slightly to a marginal build at 50.5.
Prior softness in new orders is taking the starch out of current output, which at 49.5 actually contracted compared to September. This is the first sub 50 reading for output of the recovery. Employment, at 52.3, isn't likely to break higher given the lack of strength in orders and lack of output. Inventories of both raw materials and finished goods are contracting.
Prices, however, are not coming down showing monthly increases for both inputs and outputs.
Order growth has not been a strength of Markit's report, unlike the report from the ISM where many of the factors, including orders, have been showing some of the best rates of the recovery. Regional reports on manufacturing have likewise been mixed. Together, they point to flat conditions going into year end. Durable goods orders, set for release tomorrow morning, will offer definitive data on the month of September.
