The Preliminary US manufacturing PMI index declined one and a half points in October, falling to 59.2 after reaching 60.7 in the previous month. This is the worst figure recorded since March, and the first time it has dropped below 60 points since then. The result is below the 60.3 forecast.
The preliminary PMI for services has jumped to 58.2 in October from 54.9 in September, reaching its best result in three months. In addition, the indicator improves the market consensus of 55.1.
According to IHS Markit, the economy is accelerating despite bottlenecks as services rebound from the wave of the Delta variant of covid, but prices are rising at a record pace.
Chris Williamson, Chief Business Economist at IHS Markit, notes: “In October there was a rEmergence of service sector activity as the number of COVID-19 cases continued to decline, marking an encouragingly strong start to the fourth quarter for the economy. Hiring has also picked up as companies have been encouraged to expand their capacity to meet growing demand. “
“However, while manufacturers also continue to report strong demand, the factory production remains plagued by constraints, including record supply chain bottlenecks and labor shortages. As a result, prices paid by factories for raw materials rose at another new record pace, which in turn was reflected in higher prices in manufacturing and services. Higher salaries must also be offered to attract or retain staff, adding to inflationary pressures. “
EUR / USD reaction
Mixed US PMI data has propelled the euro against the dollar, lifting it to new highs for the day at 1.1647. At the time of writing, the EUR/USD it is trading on 1.1646, gaining 0.20% daily.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.