The US manufacturing purchasing managers’ index (PMI) was 48.7 in October, down from 49.1 in the previous month, marking the eighth consecutive month of contraction, indicated by a reading below 50. Demand reportedly improved m-o-m, with new orders rising 0.5 percentage points (pp) to 49.4. Furthermore, new export orders increased 1.5 pp to 44.5. However, demand remains deep in contraction territory. Regarding output, production fell 2.8 pp to 48.2, moving from expansion into contraction. Employment rose 0.7 pp to 46.0.

In the Eurozone, the manufacturing PMI was 50.0 in October, up from 49.8 in September, marking a neutral situation. Demand reportedly remained sluggish, especially for new export orders. New orders were noted to be neutral following several months of contraction. On the supply side, sources reported a rise in output, while inventories fell, as manufacturers reduced the level of raw materials held.

The China manufacturing PMI was 50.6 in October, down from 51.2 in September, the latter being the highest result in six months. Market sources had expected 50.9 in October. New export orders reportedly declined at pace, driven by tariff uncertainty. However, market participants believe this dynamic may change with recent US-China trade activity. Output and new orders reportedly expanded at a slower pace.

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