The PMI for the manufacturing industry declined in line with expectations in October. The PMI came out at 52.1, down from 53.4 in September. All sub-indices declined but the decline in the overall PMI was mainly due to a drop in the sub-index for production. Unsurprisingly, the notoriously volatile sub-index for production reversed from the rise in September.
Today’s figures suggest that a recovery in the manufacturing sector is still distant. This is also supported by global PMIs in general, and the IFO indicator in particular, who continue their downward trends.
Details, October:
PMI: 52.1 (Nordea 52, consensus 52.5, prior 53.4)
Order intake: 52.2 (prior 53.0)
Export orders: 52.3 (53.5)
Production: 52.4 (prior 59.3)
Employment: 50.3 (prior 50.8)
Inventories: 48.5 (prior 49.9)
Production plans 6 months ahead: 58.6 (prior 62.1)
Nordea