Consumer Goods Leads Broad-Based Upturn in October
November 9, 2016 | MarkitEstimated reading time: 1 minute
Key points:
- Consumer goods output rises at fastest pace since February 2015
- Technology posts second-strongest growth following near-stagnation in September
- Consumer services ranks bottom but still sees solid rise in activity
The release of October US Sector PMI data from Markit pointed to a sharp upturn in economic growth across both manufacturing and services. That was consistent with the US Composite PMI Output Index climbing to an 11-month high of 54.9. Consumer goods led the way, followed by technology. Financials was the only sector to see growth slow since September, though the pace of expansion was still solid overall.
Consumer goods, the best performer in Q3 on average, returned to the summit of the sector rankings in October. Output increased at the sharpest pace in 20 months, helped by a substantial rise in new work. Employment barely rose, however, suggesting doubts remain about the near-term outlook.
Last month’s growth leader, financials, was unique in posting a slowdown during October. That said, activity still rose solidly overall and the rate of job creation picked up on the back of the sector’s recent strong performance.
Technology was the second-fastest growing sector, following a near-stagnation in output at the end of the third quarter. Data highlighted a bounceback in new business as the main driver of activity growth.
Industrials, basic materials, healthcare and consumer services all posted solid expansions of output. The latter saw the weakest rise, but that still represented an improvement from modest growth in the preceding three months.
The increase in industrials output was the most marked in 12 months. Healthcare signalled a similar upturn, with growth edging up to a one-year high.
Growth of basic materials production was meanwhile indicative of an upturn across the manufacturing economy as a whole. Notably, exports rose for the first time since January.
Suggested Items
Alternative Manufacturing Inc. Awarded QML Requalification to IPC J-STD-001 and IPC-A-610
04/24/2024 | IPCIPC's Validation Services Program has awarded an IPC J-STD-001 and IPC-A-610 Qualified Manufacturers Listing (QML) requalification to Alternative Manufacturing Inc (AMI).
Absolute EMS Champions Collaboration Between Humans and Robots in Modern Manufacturing
04/19/2024 | Absolute EMS, Inc.Absolute EMS, Inc., an award-winning EMS provider of turnkey contract manufacturing services, offers a perfect factory environment that seamlessly blends robotic automation with human expertise.
Gartner Forecasts Worldwide IT Spending to Grow 8% in 2024
04/17/2024 | Gartner, Inc.Worldwide IT spending is expected to total $5.06 trillion in 2024, an increase of 8% from 2023, according to the latest forecast by Gartner, Inc. This is an increase from the previous quarter’s forecast of 6.8% growth and puts worldwide IT spending on track to surpass $8 trillion well before the end of the decade.
Catching Up With Chasom Electronics
04/16/2024 | Dan Beaulieu, D.B. Management GroupI recently met with Chasom Electronics’ founding director Anil Kumar. Chasom offers a unique menu of services for companies looking to extend their technology capabilities on a short- or long-term basis. Read on to learn about this very unique service company.
Europe’s IT, Business Services Sector on the Rebound in Q1: ISG Index
04/15/2024 | BUSINESS WIREEurope’s demand for IT and business services in the first quarter rose for the first time in a year, powered by growth from the banking, financial services and insurance (BFSI) sector, according to the latest state-of-the-industry report from Information Services Group (ISG), a leading global technology research and advisory firm.