US manufacturing activity is at a 10-month low.
Markit’s latest flash PMI reading came in at 54.7, missing expectations for a 56.3 and down from October’s 55.9.
The latest report from Markit showed the weakest overall improvement in business conditions since the snow-related setback in January.
Markit said that, “weaker rates of output and new business growth were the main negative influences on the headline figure in November.”
The data also, “pointed to the slowest expansion of manufacturing production for ten months, with a number of survey respondents citing less favourable demand conditions.”
Markit chief economist Chris Williamson said, “The manufacturing sector is undergoing a marked slowdown in the fall after enjoying a buoyant summer. Output growth has now fallen for three straight months, taking the pace of expansion down to its lowest since the start of the year. Unlike January, however, this time the weaker rate of growth can’t be blamed on the weather.”
Williamson added that export weakness “holds the key” to the recent slowdown, with manufacturers reporting the largest drop in export orders in nearly 18 months.