US: Early manufacturing surveys consistent with steady growth – Nomura

Analysts at Nomura note that the Philly Fed manufacturing index of US remained elevated at 22.2 in October, above expectations (Nomura: 21.0, Consensus: 20.0), only slightly below the September reading of 22.9, as industrial sector momentum continues.

Key Quotes

“Overall, the October Philly Fed survey results were consistent with a solid reading on the Empire State manufacturing survey during the month despite a moderation in capital expenditure plans across both surveys.”

“Overall, it appears that the positive effects of the tax reform passed in December 2017 are so far outweighing the negative effects of increased tariffs and trade policy uncertainty.”