The brief July spike hopes of a rebound are officially dashed on the rocks of reality as Markit's Manufacturing PMI (preliminary) print for September missed expectations of 52.0, dropping to 3mo lows at 51.4. New orders and inventories declined but payrolls picked up modestly despite lsowing output.
"growth remains subdued overall and only slightly faster than seen through the first half of 2016."
But hope springs eternal..."Despite the growth setback in September, manufacturers appear reasonably upbeat about their longer-term prospects."
Dead cat bounce dead again...
Commenting on the flash PMI data, Tim Moore, Senior Economist at IHS Markit said:
“September’s survey data points to a sustained upturn in manufacturing production, although growth remains subdued overall and only slightly faster than seen through the first half of 2016. However, manufacturers reported firmer job hiring than one month previously and input price inflation nudged upwards, meaning that the weaker headline PMI figure is unlikely to dampen expectations that the Fed will tighten policy at the end of the year.
“Softer new order gains are the main concern in the latest PMI survey, and this could act as a drag on production growth into the final quarter. Alongside reports of subdued domestic demand, a renewed dip in export sales also held back growth momentum in September.
“Despite the growth setback in September, manufacturers appear reasonably upbeat about their longer-term prospects. Reflecting this, job creation rebounded since August and input buying continued to expand at a notably faster pace than seen during the first half of the year. At the same time, overall cost inflation remained marginal and this provided some headroom to stimulate client spending through price discounting.”