Global factories expanding

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news the global manufacturing sector is in good shape.</p><p>Overnight a set of factory PMIs for October were released worldwide and were generally reporting improving economic activity.</p><p>The widely-watched <a href="https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/october/" target="_blank"><strong>US ISM one</strong></a> reported strongly expanding conditions, little changed from September. But they aren't yet reporting any easing of pricing and supply-chain pressures. That was matched by the internationally-benchmarked <a href="https://www.markiteconomics.com/Public/Home/PressRelease/a8cc4754ce9a40158976a6b47f03e82f" target="_blank"><strong>Markit version</strong></a> although this one recorded a small pull-back from very healthy conditions, driven by production constraints. New order levels were very strong.</p><p>Hong Kong <a href="https://www.censtatd.gov.hk/en/press_release_detail.html?id=4917" target="_blank"><strong>economic activity disappointed</strong></a> in Q3-2021, turning in a limp result and well below the expected result. Q2-2021 shrank, and a bounce-back was expected in Q3, but what they got was a stall.</p><p>The China <a href="https://www.markiteconomics.com/Public/Home/PressRelease/a3a46da8f2854739a02a748b73668a2d" target="_blank"><strong>Caixin PMI</strong></a> was a bit more positive than the retreating official one, suggesting things are not completely dire in their private manufacturing sector.</p><p>The October PMI for <a href="https://www.markiteconomics.com/Public/Home/PressRelease/2394b3a95d304fab92b707519338cf8e" target="_blank"><strong>Japan</strong></a> was positive with a moderate expansion and better than for September. For <a href="https://www.markiteconomics.com/Public/Home/PressRelease/1b3c