US man­u­fac­tur­ing ex­pands for sec­ond month in a row

The Myanmar Times - - International Business -

US man­u­fac­tur­ing ac­tiv­ity ex­panded at a faster pace for the sec­ond con­sec­u­tive month in Oc­to­ber, as 10 in­dus­tries out of 18 re­ported growth.

The In­sti­tute for Sup­ply Man­age­ment man­u­fac­tur­ing PMI in­dex rose 0.4 point to 51.9 per­cent fol­low­ing a two-point in­crease in Septem­ber. A read­ing above 50 in­di­cates growth, and the in­dex has been above that key level in seven of the last 12 months.

Trans­porta­tion equip­ment, elec­tri­cal equip­ment and ap­pli­ances are among the sec­tors re­port­ing con­trac­tion in the month, but pe­tro­leum and coal are now re­port­ing growth in their busi­ness.

Pro­duc­tion also in­creased for the sec­ond-straight month, to 54.6pc, while em­ploy­ment broke the 50-point level for the first time in sev­eral months, and rose to 52.9pc.

The re­sult was “slightly bet­ter than ex­pected, con­sis­tent with at least mod­estly pos­i­tive growth in man­u­fac­tur­ing, al­though the or­ders de­tail weak­ened a bit”, said Jim O’Sul­li­van of High Fre­quency Eco­nom­ics.

IHS Markit also re­ported growth in the US man­u­fac­tur­ing sec­tor, with its PMI in­dex hit­ting the best read­ing of the year at 53.4, up from 51.5 the pre­vi­ous month.

“Oc­to­ber saw man­u­fac­tur­ing en­joy its best per­for­mance for a year,” said Chris Wil­liamson, chief busi­ness econ­o­mist at IHS Markit.

“How­ever, a wide­spread ret­i­cence to take on ex­tra staff high­lights lin­ger­ing cau­tion with re­spect to in­vest­ing in ca­pac­ity, at least un­til af­ter the pres­i­den­tial elec­tion.” –

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