U.S. October S&P PMIs - Manufacturing and Services see marginal improvements
October’s preliminary S and P PMIs are marginally improved, with manufacturing still weak at 47.8 from 47.3 and services still healthy at 55.3 from 55.2.
The manufacturing index marks the first improvement since June reached 51.6. The recent slippage in the S and P manufacturing index moved it back into line with the ISM’s. Regional surveys to date for October show a stronger Philly Fed, a weaker Empire State index and a less negative Richmond Fed. On balance the evidence appears to be for a slightly less weak ISM manufacturing index.
The S and P services index is not well correlated with the ISM counterpart, and has now seen a sixth straight quite firm reading near 55.0. October saw the ISM services index consistent with the S and P’s but in most recent months it has been weaker. Regional services surveys also show stronger data from the Philly and Richmond Feds, but weaker data from the Empire State. The ISM services survey may struggle to fully sustain its October bounce.
