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MajorAgendaFri, Oct 23 ET 9:45 AM1 min read
S&P Global's composite purchasing managers' index, or PMI, combines manufacturers' and service providers' survey reports of changes in business output; it is not an economic growth percentage. October is forecast at 57.6 points, down from the previous 58.4 but still above the 50 boundary for expansion. With regional services weakness and factory cost pressure alongside resilient bank lending, it offers a nationwide check on whether businesses are losing momentum.[1]
Expected 57.6 pts Last release 58.4 pts
If it comes in above expectations If the index exceeds 57.6, businesses report stronger expansion than expected, suggesting demand is better able to withstand expensive financing and reducing the urgency for Fed easing.[1]
If it comes in below expectations If the index is below 57.6, reported business momentum is weaker than expected, potentially making hiring and investment more cautious. A reading above 50 would still indicate expansion, not contraction.[1]
Stronger activity generally supports revenue expectations for banks, industrial companies and consumer services, but accompanying price pressure could hurt growth and property stocks by limiting rate relief. Weaker activity could help the interest-rate backdrop while hurting companies dependent on orders and customer spending. Watch survey responses on new orders, input costs and selling prices to distinguish orderly cooling from weaker demand with stubborn costs.[1]