Key Events Around the Globe That Investors Must Know: Nov 04

U.S. Manufacturing Index Unexpectedly Edges Lower In October

Manufacturing activity in the U.S. unexpectedly contracted at a slightly faster rate in the month of October, according to a report released by the Institute for Supply Management on Monday. The ISM said its manufacturing PMI slipped to 48.7 in October after edging up to 49.1 in September, with a reading below 50 indicating contraction. Economists had expected the index to inch up to 49.5. The unexpected dip by the headline index came amid a downturn by production, as the production index slid to 48.2 in October from 51.0 in September

Japan’s Factory Activity Falls at Fastest Pace in 19 Months, PMI Shows

Japan’s manufacturing activity shrank in October at the fastest pace in 19 months, hit by slumping demand in the key automotive and semiconductor sectors, a private-sector survey showed on Tuesday. The S&P Global Japan Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.2 in October from 48.5 in September, undershooting the flash reading of 49.3 and hitting the lowest since March 2024.

Eurozone Manufacturing Stagnates As Factory Orders Flat Line

Eurozone manufacturing conditions showed no change in October, with the HCOB Eurozone Manufacturing PMI posting at 50.0, up slightly from September’s 49.8, according to data released Monday. The manufacturing output index edged up to 51.0 from 50.9 in September, marking an eighth consecutive month of expansion, though growth remained mild. New orders stagnated after a brief rise in August, while export orders declined for the fourth straight month. Employment in the sector continued to decrease, extending the current sequence of job losses to nearly two-and-a-half years. The rate of decline quickened slightly, reaching the sharpest level
since June

China’s Manufacturing Malaise Deepens

China’s factory sector is currently gripped by a protracted period of enervation, witnessing its most sustained contraction in over nine years. This protracted slump has served as a powerful catalyst, galvanising renewed demands for greater policy succor—stimulus and support even as Beijing successfully brokered a tentative trade truce with the United States.

The official Manufacturing Purchasing Managers’ Index (PMI) unexpectedly plummeted to 49.0 in October, signalling the steepest decline in industrial activity in six months. This downturn occurred immediately preceding a crucial high-level leaders’ summit, which has since reportedly stabilised bilateral ties. A particularly disquieting indicator was the performance of new orders, which registered their sharpest shrinkage since 2023, a clear symptom of demand being hobbled by ongoing trade impediments and pervasive pessimism within the domestic economy.

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