US Factory Activity Growth at 7-Month High

The IHS Markit US Manufacturing PMI rose to 52.2 in November 2019 from 51.3 in the previous month and beating market expectations of 51.5, a flash estimate showed. The latest reading pointed to the steepest expansion in the factory sector since April, as output increased at the fastest pace in ten months amid strong client demand.

The improvement in the health of the manufacturing sector was supported by sharper and solid expansions in production and new orders. The rate of increase in the former reached a ten-month high amid reports of stronger client demand.

Manufacturers registered the first increase in backlogs since June, with firms responding to greater pressure on capacity by increasing staffing levels at the steepest pace since March.

At the same time, a faster rise in input costs led to a steeper increase in factory gate charges in November. Greater customer demand allowed firms to partially pass-through higher costs to clients.

Nevertheless, goods producers were less confident towards the outlook for output over the coming 12 months. Firms commonly stated that reduced optimism was linked to ongoing economic uncertainty.

US Factory Activity Growth at 7-Month High

Markit Economics | Stefanie Moya |
11/22/2019 2:49:37 PM