The ISM Manufacturing PMI climbed to 55.5 in October 2026, up from 54.5 in September and comfortably exceeding market expectations of 54.6. The reading marked the sector’s second-fastest pace of expansion in nearly four years, driven primarily by stronger output growth, with the Production Index rising to 59.0 from 56.7. New orders also expanded at a slightly faster pace (55.5 from 55.3), while employment growth moderated marginally (52.4 from 52.7). Meanwhile, the Supplier Deliveries and Inventories indexes increased by 0.1 and 2.8 points to 59.1 and 51.4, respectively. The Prices Index, however, declined to 75.2 from 77.9, although it remained elevated. Overall, the survey suggests that strong demand in AI, data centers, semiconductors and infrastructure continues to support activity in several industries. However, persistent inflation, tariff uncertainty, supply constraints and cautious customer spending are weighing on broader business conditions and investment decisions.

Construction spending in the US slipped by 1.9% month-over-month to a seasonally adjusted annual rate of $2,186.1 billion in September 2026, marking the steepest drop since April 2020, after an upwardly revised 2% advance in August. Figures contrasted with the expected 0.4% increase. Total private construction shrank by 2.4%, led by a 5.5% decline in residential activity, likely reflecting mounting construction cost pressures on renovation projects. Single-family housing outlays were flat compared with August but fell 2.4% on an annual basis. Conversely, spending on nonresidential structures rose by 1.1%, with solid increases in office (5.5%), power (1.2%) and religious (1.1%) more than offseting decreases in amusement and recreation (-1.3%) and educational (-0.6%). Meanwhile, public construction spending fell by 0.1%, reflecting a 0.1% decrease in nonresidential, outweighed by a 1.8% rise in the residental segment. Year-on-year, construction spending dropped by 2.7%.

US stocks rose at the start of November, with the S&P 500 up 0.7%, the Nasdaq gaining 0.9% and the Dow Jones advancing nearly 500 points, following Friday’s sell-off in AI-related shares. Investors are gearing up for an event-packed week, with the US midterm elections, key labour market data and a fresh batch of corporate earnings in focus. A decline in oil prices also helped boost market sentiment. Consumer discretionary was the best-performing sector, while technology stocks attempted a recovery and energy shares underperformed. Nvidia (1.6%), Amazon (3.3%) and Tesla (2.4%) booked strong gains. In contrast, Oracle slid 4.5% after offering $10 billion of shares and starting a debt sale for the same amount. Marvell Technology fell almost 6% after announcing an agreement to acquire Lumentum Holdings Inc. Elsewhere, Palantir fell 0.3% and Apple shares were down 0.6% ahead of their earnings releases later in the day.

The yield on the US 10-year Treasury note fell to 4.9% on Monday, its lowest level since mid-September, as a sharp decline in oil prices helped to ease inflation concerns. Sentiment was also supported by growing hopes for a diplomatic resolution to the conflict in the Middle East, following reports that President Trump wants to give negotiations with Iran more time and that Iran’s Supreme Leader had authorised talks. These developments helped ease concerns over further supply disruptions and their potential impact on inflation, at least for now. Meanwhile, investors are bracing for an event-packed week, with the US midterm elections and key economic releases, including the jobs report, expected to provide further clues about the Federal Reserve’s policy outlook. Last week, the Fed left interest rates unchanged, as widely expected. However, markets continue to price in another 25-basis-point rate hike in December, with the probability of such a move holding at around 75%.

Chile’s IMACEC economic activity index rose 0.2% year-on-year in September 2026, after a 1.0% drop in August, marking a return to growth following two months of contraction. Goods production fell 2.0%, dragged down by a 12.1% plunge in mining, particularly copper, amid lower ore grades and a temporary suspension of operations. In contrast, other goods rose 4.0%, supported by higher electricity generation due to greater water availability, while manufacturing increased 4.5%, driven by higher output of fishery products and metal products, machinery and equipment. Trade activity rose 4.5%, with all segments posting positive results, led by wholesale and retail sales. Services increased 0.9%, led by personal services, especially health, as well as transport. The non-mining IMACEC rose 2.0%. On a seasonally adjusted monthly basis, economic activity increased 1.9%, following a downwardly revised 0.6% fall in August.

Italy’s manufacturing PMI fell to 49.4 in October 2026 from 50.4 in September, below expectations of 50.2 and marking its weakest reading since January. The decline reflected subdued demand, with new orders falling for a fourth consecutive month and production contracting at its fastest pace since the start of the year. Geopolitical uncertainty continued to weigh on customer demand, while manufacturers also reduced purchasing activity and cut employment for the first time since July. Firms further lowered inventories, preferring to maintain leaner stocks despite persistent supply-chain disruptions. Delivery times lengthened at the sharpest rate in three months. Meanwhile, inflationary pressures intensified, reaching a four-month high. Companies passed some of these increases on to customers, pushing selling-price inflation to its highest level in three months. Despite continued optimism about the year ahead, business confidence weakened.