Strong flash PMI rounds off best quarter for US manufacturing since crisis
Markit's flash PMI signalled another month of impressive growth of the US manufacturing economy. The third quarter as a whole has seen the strongest expansion since the sector began to recover from the financial crisis.
The survey suggests the manufacturing sector will have helped drive a further robust expansion of the economy as a whole in the third quarter. We expect GDP to grow at an annualised rate of at least 3% and as much as 4%, depending to a large extent on how the vast services economy fared in September.
Reassuringly, job creation has rebounded strongly from the lull seen earlier in the summer and has risen to a rate previously not exceeded in the post-crisis survey history. Companies are clearly optimistic, building capacity and expanding to meet anticipated future sales growth.
Policymakers will be comforted to see the economy growing with such strong momentum, though with every upbeat piece of economic data the prospect of an initial hike in interest rate draws closer, especially with the survey signalling an upturn in price pressures.
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Chris Williamson | Chief Business Economist, IHS Markit
Tel: +44 20 7260 2329
chris.williamson@ihsmarkit.com