The November US Manufacturing Purchasing Managers’ Index conducted by Markit came in at 53.9, down from the 54.6 final October figure. Today’s headline number was above the Investing.com forecast of 53.8. Markit’s Manufacturing PMI is a diffusion index: A reading above 50 indicates expansion in the sector; below 50 indicates contraction.

Here is the opening from Chris Williamson, Chief Business Economist at IHS Markit in their latest press release:

“US manufacturers reported further solid growth in November. The rate of expansion settled slightly after October’s rebound from the hurricanes, but still leaves the sector on course for its best quarter since the opening months of 2015.”

“What’s especially encouraging is that growth is being led by producers of business equipment and machinery, indicating investment spending is on the rise.” [Press Release]

Here is a snapshot of the series since mid-2012.

Here is an overlay with the equivalent PMI survey conducted by the Institute for Supply Management (see our full article on this series here, note that ).

The next chart uses a three-month moving average of the two rather volatile series to facilitate our understanding of the current trend.

The two moving-average series diverged again in 2017. The ISM index expanded through most of 2016, and has continued this expansion despite a small decline in early 2017. The Markit series has trended more steadily downward from its interim high early in the second half of 2014.