TGIF data: Flash PMI, UMich
SPY•U.S. business activity continued to expand in October, though the composite PMI eased to 57.6 from 58.4. Final University of Michigan consumer sentiment rose to 48.0, while one-year inflation expectations held at 4.7%.
1. Markets and data
The Dow fell about 1%, while the S&P 500 was modestly lower and the Nasdaq modestly higher. The U.S. 10-year Treasury yield rose to about 5.00%, and U.S. crude gained more than 3%.
2. Business activity expands
S&P Global’s October flash manufacturing PMI edged up 0.1 point to 56.0, while its services PMI fell 0.9 point to 57.9. The composite measure eased to 57.6 from 58.4, but all readings remained above 50, indicating expansion. New orders reached their highest level in 4-1/2 years, backlogs increased sharply and employment rose at its fastest pace since June 2022. Selling prices reached their highest level since November 2022.
3. Consumer sentiment revised up
The University of Michigan’s final October consumer sentiment index was 48.0, up 1.7 points from its initial reading and 0.1 point below September’s final reading. Current conditions were 46.7 and expectations were 48.8. Respondents’ one-year inflation expectations were 4.7%, while their five-year expectations rose to 3.5% from 3.3% a month earlier.
