US factory sector activity accelerates to fastest pace in 2017, IHS Markit says
Factory sector activity in the States picked-up to reach its fastest clip since the beginning of 2016, amid brisk growth in new export orders, stronger job growth and increased price pressures, the results of a widely-followed survey revealed.
For his part, IHS Markit's chief business economist, Chris Williamson, emphasised the broadening out of the expansion to smaller firms.
IHS Markit's manufacturing sector PMI for October printed at 54.6 for October, versus a reading of 53.1 for September, marking a small upwards revision from the original estimate of 54.5.
Alongside production growth at an eight-month high, new business orders rose at their fastest pace since March, IHS Markit said, while demand from overseas clients was described as "substantial".
Employment meanwhile increased at its strongest clip since June 2015.
On the prices front, the survey compiler said inflationary pressures continued to be "marked" last month, amid "solid" rate increases in output prices - which rose by their quickest since April - even as input costs increased at a "softer" pace than in September.
Williamson said that "Production volumes jumped higher on the back of a substantial improvement in order book inflows, in part due to supply chains returning to normal after the hurricanes but also reflecting a combination of strong underlying demand.
"An important change in October was the broadening out of the expansion to smaller firms, which have lagged behind the strong growth reported by larger rivals throughout much of the year to date but under-performed to a lesser extent in October."