https://www.theepochtimes.com/us-business-activity-soars-to-20-month-high-in-october-ihs-markit_3550124.html
U.S. business activity rose to a 20-month high in October, although the rate of new business growth and new orders eased slightly, in part driven by political uncertainty ahead of the Nov. 3 presidential election and concerns about the CCP (Chinese Communist Party) virus outbreak.
Data firm IHS Markit said on Friday its flash U.S. Composite PMI Output Index (pdf), which tracks the manufacturing and services sectors, rose to a reading of 55.5 this month—the highest reading since February 2019. A reading above 50 indicates growth in private sector output.
The survey’s flash services sector PMI rose to 56 this month, also a 20-month high, an encouraging sign as services account for more than two-thirds of U.S. economic activity. Manufacturing held steady in October, with the survey’s flash manufacturing PMI ticking up slightly to 53.3 from 53.2 in September.
“The U.S. economy looks to have started the fourth quarter on a strong footing, with business activity growing at a rate not seen since early 2019,” said Chris Williamson, chief business economist at IHS Markit, in a statement. “The service sector led the expansion as increasing numbers of companies adapted to life with COVID19, while manufacturing continued to report solid growth amid rising demand from households and businesses.”
Some manufacturers and service industry companies said the CCP virus crisis had an adverse impact on demand, the report indicated. Other companies said some clients were waiting to place new orders until after Election Day. The survey’s flash composite new orders index dipped to 54.3 this month from a reading of 54.8 in September, although it remained in expansion territory.