Breaking.. US manufacturing & services PMI positive on October

Data released on Thursday from S&P Global's Statistics Office indicated that the preliminary reading of the Purchasing Managers' Index (PMI) for the manufacturing sector in the United States was higher than expected. The preliminary PMI reading for the manufacturing sector recorded 47.8 points in October, while expectations had indicated a reading of 47.5 points. The previous reading for the index was approximately 47.3 points in September.

At the same time, the preliminary reading of the Purchasing Managers' Index for the services sector in the United States reported growth of 55.3 points in October, which also came in above expectations that indicated a growth reading of 55 points. Additionally, this was higher than the previous reading of 55.2 points recorded in September.

This comes despite the fact that during the past period, the U.S. economy showed clear signs of being adversely affected by the consequences of tight monetary policy, which severely impacted the manufacturing and services sectors in previous months. As a result, markets are closely monitoring the release of such data to assess the extent of the recovery of the U.S. economy, which has a strong impact on the movements of the U.S. dollar against other currencies.

It is worth noting that a reading above 50 indicates growth in activity in the manufacturing and services sectors, while a reading below 50 indicates a contraction in activity. Typically, two readings of this index are released during the week: the preliminary estimates and the final reading, with the preliminary estimates being released first and having a stronger impact.