US manufacturing activity accelerates a little in October, IHS Markit says

US factory sector activity expanded a tad less quickly than initially thought in October, according to the results of a widely-followed survey.

IHS Markit's manufacturing sector Purchasing Managers' Index edged up from a reading of 55.6 for September to 55.7 in October, reaching a five-month high, although it was also below the preliminary reading of 55.9.

Significantly, according to the survey compiler a gauge of new orders contained in the survey notched-up a five-month high, despite only a fractional increase in a sub-index for new export orders.

The pace of hiring meanwhile reportedly picked-up to its fastest in 10 months.

However, increased prices for raw materials and metals, on the back of the trade tariffs, weighed on profit margins in October, which in part firms passed on to their own clients.

In parallel, companies were stockpiling inputs, with pre-production inventories rising for a 17-month running, albeit modestly, as longer input deliveries reportedly stymieing their efforts.