US manufacturing PMI in October rises to 6-month high

By Ovunc Kutlu

ISTANBUL (AA) - The US manufacturing PMI in October rose to its highest in six months, S&P Global said Tuesday.

The manufacturing purchasing managers' index (PMI), which measures the activity of managers in the manufacturing sector, added 0.2 points to 50.0 in October, up from 49.8 in September, according to flash estimates by the financial services company.

The market expectation for manufacturing PMI, which recorded its highest level since April, was 49.5.

A reading below 50 represents contraction, while above 50 indicates expansion in the sector.

"The rate of contraction softened, however, as some firms noted that cancelled orders were moved to inventories following a reduction in backlogs of work," it said in a report.

The S&P Global Flash US Services Business Activity Index came in at 50.9 in October, up 0.8 points from 50.1 in September, hitting its lowest in three months.

"To drive sales and entice customers, companies raised their average selling prices for goods and services at the slowest pace since June 2020 in October," said the report.

"Manufacturers continued to increase output prices at a modest pace, but service providers saw a notable slowdown in charge inflation amid competitive pressures and customer requests for concessions," it added.