*As seen in Risk In The Week report 11/26/2022, cablefxm.co.uk/reports
The manufacturing PMI for October showed the sector slipping into contraction as the reading recorded a 49.2 vs the prior 50.1, this was slightly lower than the market consensus expectation of 49.8. The non-manufacturing figure surprised to the downside as the reading came in at 48.7 vs the forecast of 50.1, this was the lowest since May. The weakness was led by the services sector, as Covid curbs are set to slowdown demand. The team at Bloomberg Economics note early indications of production weakening, daily steel output contracted by 4% in the first days of November while oil refinery rates eased over the first three weeks of the month. The team at ING reminds us that China covid have cases increased, and this could be translated into deeper contractions relative to October PMIs.
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