Reflecting a sharp turnaround of US economy which raises a raft of doubts over US Fed’s dovish projection made earlier this week, data from IHS Markit survey had unveiled on Friday that the US manufacturing and service sectors’ PMI [Purchasing Managers’ Index] had witnessed a revival in new orders this moth despite a steady spike in pandemic cases across the world’s No.
1 economy. In point of fact, latest set of IHS Markit survey data that regularly monitor the fiscal readouts of roughly 5,000 US businesses had revealed on Friday that its flash US Composite PMI [Purchasing Managers’ Index] took a sweeping turnaround to a reading of 54.7 this month, remarking the index’s highest level since February 2019, while the IHS Markit manufacturing sector PMI had snapped back to its highest level since January 2019 and US service sectors PMI had hit an eighteen-month high.
United States back to business as IHS Markit flash survey data overwhelms analysts
In tandem, Friday’s upbeat US composite PMI data came against the backdrop of a dovish projection from the US Fed less than a couple of days earlier, though a reawakening of pandemic outbreak in Europe alongside a steady rise in cases across the United States had been causing headaches for the investors.
Nonetheless, citing a solid advancement in US manufacturing and service sector activities this month, Markit said at its Friday statement, “Driving the overall upturn in output was stronger client demand.
Total new business rose for the first time since February and at a solid rate. Manufacturing firms registered a steeper expansion in new order inflows than in July, while service providers signalled a renewed increase in sales.
” However, an unprecedented rise in Markit’s survey data that appears to have bolted out of the blue, mirrored a zigzag pattern in a full-fledged recovery of US economy which had entered into a recession in February this year.
