Markit is out with its November Flash PMI reading, which came in at 52.4, up from 51.0 in October. Bloomberg had a consensus expectation of 51.0, and the range of estimates was 50.5 to 51.6. Markit said that manufacturing growth strengthened to five-month high in November. Here is a breakdown of the numbers with commentary from Markit:
- Output rose to 52.9 from 51.4… Expansion, faster rate
- New Orders rose to 52.8 from 51.1… Expansion, faster rate
- New Export Orders was higher at 49.9 versus 47.2… Contraction, slower rate
- Employment was higher at 52.6 versus 51.8… Expansion, faster rate
- Backlogs of Work was higher at 49.8 versus 49.3… Contraction, slower rate
- Output Prices was higher at 52.6 versus 51.6… Rise, faster rate
- Input Prices was higher at 63.6 versus 57.1… Rise, faster rate
- Stocks of Purchases was higher at 47.5 versus 46.4… Contraction, slower rate
- Stocks of Finished Goods 47.7 was lower than 48.7… Contraction, faster rate
- Quantity of Purchases was flat at 51.5 versus 51.5… Expansion, rate unchanged
- Suppliers’ Delivery Times sank to 46.2 from 47.8… Lengthening, faster rate
PMI index readings above 50.0 signal an increase or improvement on the prior month, while readings below 50.0 indicate a decrease.
Markit said about this month’s report:
Manufacturers reported a further rise in output during November, with a number of companies attributing this to larger volumes of new work. Moreover, production increased at the strongest rate since June, having quickened from the near-stagnation recorded two months previously.
This is not generally a market moving number unless it is grossly different from economist expectations.
JON C. OGG