Markit's US manufacturing PMI hits highest level in a year

Markit’s final manufacturing purchasing managers’ index came in at 53.4 in October, up from an initial reading 53.2 and 51.5 in September.

This marked the highest level recorded for a year as production strengthened, supported by a marked upturn in new orders.

Chris Williamson, chief business economist at IHS Markit, said: “October saw manufacturing enjoy its best performance for a year. Factories benefitted from rising domestic and export sales, driving output higher to mark an encouragingly strong start to the fourth quarter.

“The survey also picked up signs of manufacturers and their customers rebuilding their inventories, often filling warehouses in anticipation of stronger demand in coming months. 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.”