UK manufacturing decline slows after new Brexit stockpiling rush -PMI

UK manufacturing decline slows after new Brexit stockpiling rush -PMI

UK manufacturing decline slows after new Brexit stockpiling rush -PMI

US employers added a solid 128,000 jobs in October, a figure that was held down by a now-settled strike against General Motors that caused tens of thousands of workers to be temporarily counted as unemployed.

Meanwhile, the unemployment rate rose slightly to 3.6%, but it was for a good reason: 325,000 Americans started looking for work.

Economists had expected the economy to add 75,000 jobs, with forecasts ranging between 55,000 and 155,000, according to Econoday.

There was an extraordinary jump of 47,500 jobs in restaurants in October, which accounted for 37.1 percent of job growth for the month.

Food services and drinking places, social assistance, and financial activities all added jobs.

Growth was restored in capital goods and softened in the consumer goods category, while a quicker contraction was registered at intermediate goods makers, the statement said.

Average hourly wages have also increased by 6 cents to $28.18, bumping up the annual earnings from 2.9 percent to 3 percent.

Major job revisions from September and August indicated the economy is still strong despite recession concerns, with a monthly job-gains average of 176,000 over the last three months.

The healthy employment gains reassured investors amid uncertainty around the trade war between the USA and China and talk of a looming economic slowdown. "There's no signs here the consumer is losing any momentum".

The government also revised up its estimate of job growth for August and September by a combined 95,000, suggesting a healthier employment market than many had thought.

The unemployment rate, which is calculated from a different survey, rose from a 50-year low of 3.5% to 3.6%, the Labor Department said Friday.

"That's a risk that we've been monitoring, but we don't see it yet", Powell said.

According to IHS Markit's survey, the headline PMI, a composite single-figure indicator of manufacturing performance, increased to 49.3 in October from 47.9 in September, its highest level for six months and reviving to sit broadly in line with its historical average. Given that the United States is in its longest running economic expansion in history, those numbers are considered solid.

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The gains came even though federal government hiring of temporary workers for the 2020 census ended, removing the temporary boost of prior months. Nevertheless, many economists and investors agreed the report was strong. U.S. stocks were trading higher.

October's PMI data showed that new business continued to decline, despite the fastest growth in export orders since December 2018 as European Union customers stocked up on parts from British suppliers - a sign that domestic demand was especially weak.

The other culprit is the economy, which is slowing now that the effects of the federal tax cuts and spending increases spearheaded by President Trump are fading.

"With a further Brexit extension confirmed and the prospect of a December general election, it looks as if the spectre of uncertainty will cast its shadow over manufacturing for the remainder of 2019", Dobson said. Fed officials did, however, signal they are hitting pause on the current cycle of interest rate cuts.

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