US Markit flash manufacturing PMI advances in October

The Markit manufacturing PMI rose to 54.0 in the October flash estimate, coming in stronger than consensus expectations (52.7) for a modest decline from final September print of 53.1. Most of the survey components posted moderate advances that brought the October reading above recent trend. Output (55.4, previous: 54.5) and new orders (55.5, previous: 54.7) both rose to their highest levels since March. The employment index also rose solidly, to 52.9 from 50.8 last month.

Export orders ticked up to 51.6 (previous: 50.6) and prices pressures were weak, on net. This morning's release of the Markit PMI shows notable contrast with regional manufacturing surveys already released for October; those data were, on balance, weaker this month.

"Given the relatively short history of the Markit series, we place greater weight on the ISM manufacturing index in our assessment of national manufacturing trends. We have not seen evidence of a meaningful upturn in other US manufacturing data this month, and are therefore inclined to wait for the ISM release on November 2 for a more reliable signal on aggregate manufacturing activity", says Barclays.