In the US, September figures for both the ISM manufacturing index are due out. Together with ISM non-manufacturing index, these indices declined sharply in August, indicating that growth has also disappointed in Q3. Regarding the manufacturing sector, regional indices and the Markit PMI manufacturing index for September have declined, suggesting that the ISM manufacturing index could move even lower in September from the level of 49.4 in August. Though the Markit manufacturing PMI index declined to 51.4 in September, it is still above the 50 threshold, suggesting growth. We think there might be a risk that the ISM index declined 'too much' in August and there could be a (small) upward correction in September. We estimate the ISM manufacturing index increased slightly to around 50.0 in September. However, this is still a low level.
In the UK, PMI manufacturing data is due out. The PMI rebounded significantly in August after falling sharply in July just after the vote. Consensus is for a drop to 52 in September versus 53.3 in August.
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