US: Markit Manufacturing PMI improved to 51.5 in October vs. 50.7 expected

• Manufacturing PMI rose to 51.5 in October (preliminary) from 51.1.
• US Dollar Index edged higher on the upbeat PMI readings.

According to the IHS Markit’s advances Purchasing Managers’ Index (PMI) report for October, the economic activity in the manufacturing sector in the United States expanded at a more robust pace than expected with the Manufacturing PMI coming in at 51.5 and beating the market expectation of 50.7.

Further details of the report revealed that the Services PMI ticked up to 51 from 50.9 as expected while the Composite PMI improved to 51.2 from 51 in the same period but fell short of analysts’ estimate of 51.6.

The US Dollar Index edged higher on the data and was last up 0.12% on the day at 97.58.

Commenting on the data, “Despite business activity lifting from recent lows, the survey data point to annualized GDP growth of just under  1.5% at the start of the fourth quarter, and a near-stalling of new order growth to the lowest for a decade suggests that risks are tilted toward growth remaining below trend in coming months,” said  Chris Williamson, Chief Business Economist at the IHS Markit.