US: Private sector growth rebounds to three-month high - IHS Markit

"October data pointed to another strong month for the manufacturing sector, with overall business conditions improving at the fastest pace for five months," the IHS Markit said in its Flash PMI report on Wednesday and added: "This was highlighted by the seasonally adjusted IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index registering 55.9, up from 55.6 in September and well above the crucial 50.0 no-change threshold."

Key takeaways from the press release

• At 54.7 in October, up from 53.5, the seasonally adjusted IHS Markit Flash U.S. Services PMI Business Activity Index indicated a rebound in output growth from September’s eight-month low. 
• At 54.8, up from 53.9 in September, the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index signalled the fastest rate of expansion since July.
• Private sector growth rebounds to three-month high, but intense cost pressures persist.
• October data pointed to the sharpest rise in operating expenses for five months.
  • Survey respondents widely commented on higher cost burdens and stretched domestic supply chains in the wake of trade tariffs. 
• Expectations regarding the outlook for business activity improved in October, with the degree of positive sentiment the strongest for five months.
  • Manufacturers remained more upbeat overall than service sector companies.