US Manufacturing Sector Stabilization Confirmed in October

The S&P Global US Manufacturing PMI was confirmed at 50.0 in October 2023, marking a slight improvement from 49.8 in September and indicating a stabilization in the health of the manufacturing sector.

New orders increased for the first time in six months, reaching the fastest pace since September 2022.

Additionally, the rate of output growth accelerated, albeit slightly, to the second-fastest level since May 2022.

On the other hand, backlogs of work shrank for the thirteenth consecutive month, and employment levels declined for the first time in 39 months, with the steepest drop since June 2020.

On the pricing front, input costs rose at the fastest rate since April, primarily due to increased oil and oil-derived material costs, while output charges saw their most significant increase in six months.

Finally, business confidence dipped to its lowest point in 2023 so far, largely due to diminishing backlogs and relatively subdued demand conditions.