This article was originally published by Tyler Durden at ZeroHedge.
After yesterday’s mixed bag of ‘soft’ survey data from regional Feds (showing prices re-accelerating once again), we got the preliminary October prints from S&P Globals’ PMIs this morning with expectations mixed.
Both the Manufacturing (47.8 vs 47.3 prior) and Services (55.3 vs 55.2 prior) survey data was better than expected (47.5 and 55.0 respectively) as hard data has improved consistently in the last month…
Source: Bloomberg
While the Manufacturing survey did improve, it remained in contraction territory for the third straight month.
Commenting on the data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
“October saw business activity continue to grow at an encouragingly solid pace, sustaining the economic upturn that has been recorded in the year to date into the fourth quarter. The October flash PMI is consistent with GDP growing at an annualized rate of around 2.5%.
“Demand has also strengthened, as signalled by new order inflows hitting the highest for nearly one-and-a-half years, albeit with both output and sales growth limited to the services economy.
“Sales are being stimulated in part by more competitive pricing, which has in turn helped drive selling price inflation for goods and services down to the lowest since the initial pandemic slump in early 2020. These weaker price pressures are consistent with inflation running below the Fed’s 2% target.
However, it’s not all ‘awesome’…
“Businesses nevertheless remain cautious about hiring, leading to a third month of modest payroll reductions. Firms are worried in particular about uncertainty caused by the Presidential Election.
But perhaps the trend towards a Trump victory is starting to creep into business leaders’ minds…
“More encouragingly, confidence in the longer, year-ahead, outlook has improved as companies hope that a stabler post-election environment is more conducive to growth. This is especially so in the manufacturing sector, where factories hope that the current soft patch in production and sales will reverse as the uncertainty caused by the political environment passes.”
Of course, it’s an election month, so we really shouldn’t be surprised when the data ‘beats’ expectations.
It Took 22 Years to Get to This Point
This article was originally published by Michael Snyder at The Economic Collapse Blog. When one...
The United States doubled its troop presence in Syria to 2,000 as the ruling class is determined...
This article was originally published by Lance D. Johnson at Natural News under the title:...
You must be logged in to post a comment.
Commenting Policy:
Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.
This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.
Comments