Manufacturing Hangs In As Construction Spending Soars

Category: Small Business Borrowing Published: Tuesday, 10 November 2015 Written by Admin

ISM factory gauge hangs in

The closely watched manufacturing index eased just 0.1 point to 50.1 in Oct., a hair better than the 50.0 analysts had expected. New orders increased 2.8 points to 52.9, a good sign for future activity, but employment contracted, at 47.6. The exports gauge also improved, by 1.0 point, but remained in contraction territory at 47.6.

Construction spending surges

Spending rose 0.6% in Sept., better than the 0.4% gain expected, and was 14.1% higher vs. a year ago. Residential construction increased 17.2% vs. a year ago while the manufacturing sector was up 41.3%.

#149; Factory activity rebounded in Oct., according to Markits PMI, which rose 1 point to 54.1, in line with expectations. New orders rose the most since March. Export orders increased more modestly, as the stronger dollar weighed. Backlogs and employment both increased.

#149; Americans spent more in Oct., according to Gallups spending measure. The daily average of $92 was $4 above Sept. and above the average range of $81 - $91 notched during 15.

#149; Small-business borrowing edged up in Sept., according to a Thomson Reuters/PayNet index, which touched 140.4, up from 135.6 in Aug. Thats up 11% vs. a year ago, driven by more borrowing in transportation, warehousing and construction industries.

Eurozone PMI inches up

Markits final manufacturing PMI for Oct. was 52.3, up from 52.0 in the initial estimate. Several countries saw multi-month highs, including a 53.0 reading in Austria that was the best in nearly 2 years. New business and new export orders rose, as did employment.

#149; German manufacturing activity dipped to 52.1 from 52.3 in Markits final Oct. reading. That was a 3-month low. New business continued to rise, as did new export orders. But output expanded at the slowest rate in 3 months.

#149; Frances factory activity was unchanged at a reading of 50.6 in Oct., Markit said. New orders grew for the first time in over a year, but employment sank, with job cuts accelerating to the fastest pace since Dec.

#149; UK manufacturing surged in Oct., according to the Markit/CIPS PMI, which rose nearly 4 points to 55.5, its best month of output growth in over a year. Export orders grew a second straight month, but domestic orders drove most of the gains.

China factories still in slump

The official govt PMI was unchanged at 49.8 in Oct., while an index from Caixin/Markit rose more than a point to 48.3. But thats still in contraction, for the 8th straight month. Analysts had expected the govt index to touch 50.0.

COMING UP TUESDAY

#149; Factory orders for Sept., 10 am ET (forecast: -0.9%).

WEDNESDAY

#149; ADP employment report for Oct., 8:15 am ET (forecast: 185,000 private payrolls).

#149; Intl trade for Sept., 8:30 am ET (forecast: -$41.1 bil).

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