October 2024 Manufacturing Purchasing Managers' Index (PMI) in the U.S., Eurozone, and India

U.S. Manufacturing Purchasing Managers' Index Falls to 46.5 in October

The Institute for Supply Management (ISM) reported that the U.S. Manufacturing Purchasing Managers'Index (PMI) dropped to 46.5 in October from 47.2 in September, marking the lowest level since July 2023. This also marks the 23rd contraction in the past 24 months. Although the new orders index saw a slight uptick to 47.1, it remains in contraction territory, indicating persistently weak market demand.

Eurozone Manufacturing Continues to Decline

According to the latest data from S&P Global, Eurozone manufacturing activity continued its downward trend in October, though the rate of decline was the slowest in five months. The HCOB Manufacturing PMI rose marginally to 46.0 from September's 45.0, ending at 45.9. The manufacturing sector has now been in contraction for 28 consecutive months, the longest recession since 1997. Germany and France both remained in contraction, with Germany's October PMI at 43.0 and France at 44.5. Italy's manufacturing sector saw an accelerated decline, with its PMI falling to 46.9, while Spain's manufacturing sector expanded at its fastest rate in two and a half years. Overall, confidence among Eurozone manufacturers dropped to a one-year low, with both growth expectations and employment levels waning.

India's Manufacturing Sector Gains Momentum

In October, India's manufacturing PMI rose from 56.5 in September to an eight-month high of 57.5, indicating a strong improvement in business conditions. New orders and international sales surged, spurring a solid recovery. Export orders saw robust growth, driven by increased demand from Asia, Europe, Latin America, and the U.S. Despite this growth, inflationary pressures remain, with both input and selling prices increasing. Hiring in October surpassed that in September, with approximately 10% of firms adding new staff. Looking forward, Indian manufacturers are optimistic about output, reflecting heightened business confidence.