The headline index remained below the 50.0 threshold that separates contraction from expansion for a record 19th straight month, with orders and production declining again, though at slower rates and only modestly overall. The PMI survey showed employment conditions contracted at a more modest pace than in the previous month, but manufacturers cited weak client demand, with the coronavirus pandemic continuing to remain the main factor weighing on production. “Infection rates have surged in both domestic and international markets, which resulted in a renewed fall in export orders, which dampened confidence,” said Usamah Bhatti, economist at IHS Markit, which compiles the survey. ADVERTISEMENT “Concern remains that weaknesses caused by the COVID-19 pandemic persisted as both output and new orders both fell for the 23rd month in a row.” Growth expectations for the year ahead remained positive on hopes that the pandemic fades and of a robust recovery in domestic and external demand. The overall survey result contrasted with more upbeat official figures, such as the gross domestic product figures and trade data that showed the nearly two-year run of monthly export declines slowing significantly in October. Other official figures reported on Monday showed sharp improvements in October output and retail sales, offering the latest evidence of economic resilience. Reporting by Daniel Leussink; Editing by Sam Holmes Our Standards: The Thomson Reuters Trust Principles.
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