Operating conditions across U.S. manufacturing sector improves in October; flash PMI index rises to 54.5

The latest survey of IHS Markit indicates towards improved operating conditions throughout the U.S. manufacturing sector. The seasonally adjusted flash U.S. Manufacturing PMI index rose to 54.5 in October from September’s print of 53.1. This signals the most solid upturn in manufacturing growth since January.

Rapid rates of manufacturing production and new order growth were registered in the month. This aided in stimulated employment figures, with the pace of job creation the sharpest since June 2015. There were also positive developments with regards to export sales. Manufacturers registered the most noticeable rise in new work from abroad for 14 months.

Stronger demand for inputs and continued hurricane-related disruption led to deep pressure on supply chains in October. The latest lengthening of average lead-times among vendors was the largest since that recorded after heavy snowfall in February 2014, noted Markit.

The data for October indicated to another sharp increase in input costs, although the pace of inflation alleviated from September’s near five-year peak. In the meantime, factory gate charges rose at just a modest rate.

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