The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 48.4 in November, up from October’s 48.1. Consequently, the index moved closer to the 50.0 no-change threshold, signaling a softer deterioration in manufacturing sector operating conditions compared to the previous month.
The headline improvement was driven by softer contractions in new orders and output as both domestic and foreign demand remained weak amid heightened uncertainty. Consequently, backlogs of work plummeted and firms reduced their workforce numbers and purchases. More positively, cost pressures eased, which translated into smaller increases in output charges. Additionally, business confidence among manufacturers strengthened; optimism was fueled by expectations of higher investment and demand.
FocusEconomics Consensus Forecast panelists see fixed investment growing 7.3% in 2023, which is unchanged from the previous month’s estimate. In 2024, the panel projects fixed investment to expand 7.8%.