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Canada (up from 55.1 to 56.0, the best reading since August 2018):
Manufacturers reported the strongest growth in new orders and output in
at least two years, with employment rising at rates not seen since
January 2019. The index for future output was the best in 14 months.
Mexico (up from 41.3 to 42.1, declining at slowest pace since March):
Mexico once again reported the weakest PMI among the top 10 markets.
Although activity continued to deteriorate very sharply, manufacturers
expressed cautious optimism for stronger production in the outlook. The
index for future output expanded for the first time since the pandemic
began.
China (down from 53.1 to 53.0): New orders expanded at the fastest
pace since January 2011, with exports increasing at the best rate since
August 2017. Although production eased somewhat, respondents were
upbeat about future activity. Hiring expanded for the first time in 2020.
Japan (up from 47.3 to 47.7, the highest reading since February):
Despite progress across the board, Japanese manufacturing activity
remained severely challenged, contracting for the 17th straight month.
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Yet, the index for future output suggests optimism, with that measure at
its best reading since June 2018.
United Kingdom (down from 55.2 to 54.1, pulling back from the best
reading since February 2018): New orders and production continued to
expand at solid rates despite easing in September, and exports grew at
their best pace since May 2018. Hiring fell for the eighth straight month,
albeit at a slower rate of decline.
Germany (up from 52.2 to 56.4, the best reading since July 2018): New
orders, exports and output each soared to their fastest growth rates since
December 2017. The index of future output rose to its strongest level
since February 2018. At the same time, hiring continued to deteriorate,
albeit at a slower pace.
Netherlands (up from 52.3 to 52.5, expanding for the second straight
month): Activity in the sector grew at the best reading since February,
buoyed by strength in production, which notched its fastest rate since
December 2018. New orders and exports slowed somewhat, but
continued to expand very modestly. However, hiring weakened further,
contracting for the seventh consecutive month. Manufacturers were
mostly upbeat about future output, but with some easing from August’s
survey.
South Korea (up from 48.5 to 49.8, the highest reading since January):
Manufacturing activity has contracted in every month so far in 2020 (and
in 21 of the past 25 months). Encouragingly, output expanded for the first
time since October 2018. The index for future output remained at positive
levels for the second straight month, but with some easing in the latest
survey. New orders and exports stabilized, nearing neutral in September.
Brazil (up from 64.7 to 64.9, a new record high): In September, new
orders and output pulled back somewhat from record highs in August but
remained solid overall. Employment expanded at the fastest rate since
February 2010, and exports rebounded to the best reading since April
2016. Brazil had the highest PMI among the top 10 markets for U.S.-
manufactured goods, and survey respondents were very optimistic in
their outlook.
France (up from 49.8 to 51.2, expanding for the third time in the past four
months): New orders and output picked up, and exports bounced back in
September. While employment has contracted in every month so far this
year, hiring declined at a slower pace in the latest survey. The index for
future output pointed to cautious optimism for modest growth in
production over the next six months.
Regional and National Trends: Here are some other economic trends worth
noting.
China: In August, industrial production grew 5.6% year-over-year, the
best pace since December and a major improvement from the decline of
13.5% year-over-year seen in January/February. At the same time, retail
sales have increased by 0.5% year-over-year in August, the first positive
reading since December. These gains are encouraging, despite being
notably slower than before the COVID-19 pandemic. In contrast, fixed-
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Trade-Weighted U.S. Dollar Index: Since April 24, the U.S. dollar has fallen
5.9% against a broad-based index of currencies for goods and services,
according to the Federal Reserve. The index reflects currency rates per U.S.
dollar, suggesting the dollar can purchase somewhat less today than it could a
few months ago. Overall, the recent pullback reverses the trend seen earlier in
the spring, when investors flocked to the U.S. dollar and dollar-denominated
assets due to the COVID-19 pandemic. The current trend coincides with signs
of improvements in manufacturing activity in the global economy, but it has
also been exacerbated by lingering concerns about COVID-19 in the U.S.
International Trade:The U.S. trade deficit rose to the highest level since
August 2006, jumping from $63.37 billion in July to $67.10 billion in August.
Goods imports increased from $196.44 billion to $202.96 billion, the best
reading since January. That was enough to outpace the growth in goods
exports, which rose from $115.62 billion to $119.10 billion, a five-month high.
More importantly, the goods trade deficit rose from $80.81 billion to $83.86
billion, a new record. In addition, the service-sector trade surplus has fallen
over the course of this year, down from $24.30 billion at the end of last year to
$16.76 billion in August, the lowest level since January 2012.
NAM submits comments calling for U.S. trade agreements that open
markets, set high standards. On Oct. 2, the NAM submitted these comments
to the U.S. International Trade Commission to aid in an investigation into the
economic impact of trade agreements implemented under U.S. trade
authorities procedures. The comments detail critical elements of U.S. trade
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Learn more.
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Learn more.
Learn more.
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than $1.5 billion worth of tariffs for three years on products not made or
available in the United States.
Learn more.
Learn more.
Learn more.
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