Manufacturing activity in January expanded at a slower pace than expected.
According to Markit Economics, the latest Flash manufacturing PMI reading came in at 53.7.
Any reading over 50 indicates expansion, so manufacturing activity still expanded in January, but at the slowest pace in 12 months.
Expectations were for the reading to come in at 54.0, up slightly from the 53.9 final reading in December.
Markit’s report said that slower new business growth weighed on the overall sector in January.
The report also noted that, “some manufacturers noted that reduced spending among clients operating in the oil and gas sector had weighed on new order volumes during January.”
Following the report, Chris Williamson, chief economist at Markit said, “Business conditions continued to improve among US factories at the start of the year, though the rate of growth continued to cool from the scorching pace seen in the summer months.”