Metals’ Users PMI Reports Softened Somewhat In November
- The IHS Markit global steel users purchasing managers index (PMI) fell from 51.5 in October to 50.7 in November due to the fact that new orders rose, but at a slower rate than a month ago, and due to a decline in purchasing activity. IHS Markit economist David Owen explained, “With the industry driven mainly by Asian firms, softer upturns in output and new orders in the region weighed on growth. This detracted from an increase in demand at US steel users, the first in five months, albeit at only a modest pace.” Read the full report here.
- The IHS Markit global aluminum users PMI fell to 50.8 in November, from 51.7 in October due to slower rates of growth in both output and new orders. Employment did increase for the first time since October 2019. Economist Owen explained, “New order growth eased to a slower and marginal pace, mainly due to a softer rise in new business received by Asian companies as Chinese stimulus for manufacturers” wore off. Read the full report here.
- The IHS Markit global copper users purchasing managers index (PMI) fell to 50.4 in November, down from 50.9 in October. New orders increase only marginally while inventories contracted at fastest rate in more than six years. Economist Owen advised, “A key trend to watch over the coming months will be new export orders. Despite falling in November, the rate of decrease was the softest for over a year, and marginal.” Read the full report here.
- As a reminder, you can find all PMI readings, including all manufacturing-related PMI readings, here.