Economic Watch: Manufacturing, Leading Indicators Rebound

New preliminary numbers suggest U.S. manufacturers started the fourth quarter in a strong fashion, and other numbers point to an improving overall economy in the final three months of the year -- with manufacturing and housing, two key areas related to truck freight, helping lead the way.
The Flash U.S. Manufacturing Purchasing Managers' Index from the financial information services provider IHS Markit rebounded to a level of 53.2 in October, from a three-month low of 51.5 in September. With the rate of improvement the fastest since October 2015, the report signaled a solid upturn in overall business conditions.
Stronger output and new business growth were the key factors boosting the headline PMI, which helped offset a drag from softer job hiring in October. A rebound in business conditions contributed to greater input buying among manufacturing firms and renewed pressures on capacity. At the same time, manufacturers sought to boost their stocks of inputs, with pre-production inventories rising for the first time since November 2015.
Manufacturing production has now increased for five months running, following a slight dip in May.Manufacturing production has now increased for five months running, following a slight dip in May. Survey respondents cited an accelerated pace of new business growth and, in some cases, efforts to boost production in anticipation of stronger client demand in the months ahead.
To that end, incoming new orders picked up at the fastest pace for 12 months. Anecdotal evidence suggested that new product launches and stronger domestic demand resulted in greater sales volumes. However, some firms continued to report delayed decision-making among clients, linked to uncertainty ahead of the presidential election.
New export orders increased only slightly in October, but this was an improvement on the fractional decline seen during the previous survey period.
“Manufacturing showed further signs of pulling out of the malaise seen earlier ...Read the rest of this story
