- Markit Manufacturing PMI rebound to 51 from 50.3 in August.
- Markit Services PMI rose to 50.9 vs 49.6 expected.
- US Dollar Index inched higher on the upbeat data.
The IHS Markit’s preliminary September Purchasing Managers Index (PMI) report today revealed that the business activity in both the manufacturing and the service sectors in September expanded at a more robust pace than expected.
The Manufacturing PMI rose to 51 from 50.3 in August to beat the market expectation of 50.3 and the Services PMI improved to 50.9 to surpass analysts’ estimate of 49.6. The Composite PMI also advanced to 51 from 50.7 in August. With the initial reaction, the US Dollar Index inched higher and is now up 0.2% on the day near 98.70.
Commenting on the data, “The survey indicates that businesses continue to struggle against the headwinds of trade worries and elevated uncertainty about the outlook,” said Chris Williamson, Chief Business Economist at IHS Markit. Below are some additional quotes from the press release.
“Although picking up slightly, the overall rate of growth in September remained among the weakest since 2016, commensurate with GDP rising in the third quarter at a subdued annualized rate of approximately 1.5%.”
“Prospects also look gloomy, with inflows of new business down to the lowest since 2009 and firms’ expectations of growth over the coming year stuck at one of the most subdued levels since 2012.”
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