The Markit Flash U.S. Manufacturing PMI rose from 53.4 in October to 53.9 in November, a 13-month high. More importantly, output grew at its strongest rate since March 2015 (up from 55.3 to 56.0), a sign that U.S. manufacturing activity has continued to stabilize from softness earlier in the year. Indeed, the headline index bottomed out in 2016 at 50.7 in May, and it has averaged 52.0 year-to-date through the first 11 months. Beyond production, other key indices were also stronger in November, including new orders (up from 54.7 to 55.5), exports (up from 50.9 to 51.0) and hiring (up from 51.6 to 52.4). Overall, this report provides some encouragement for manufacturers, many of whom have been rather cautious in their economic outlook for much of the past two years.
Meanwhile, the Markit Flash Eurozone Manufacturing PMI increased from 53.5 to 53.7, its fastest pace since January 2014. As such, the continent’s economy continues to move in the right direction, with activity accelerating at a modest pace. Overall, the headline PMI has trended higher since bottoming at earlier in the year at 51.2 in February. New orders (up from 53.8 to 54.5) and exports (up from 53.4 to 54.1) were both stronger in this report. Yet, output (down from 54.6 to 54.1) and employment (down from 53.7 to 53.5) each pulled back a little in this survey despite expanding at a still-decent rate. In addition, manufacturers in Germany (down from 55.0 to 54.4) and France (down from 51.8 to 51.5) also reported some easing in growth in November, even as the underlying data continues to be quite positive for both.