A preliminary reading on US manufacturing activity in November indicated a slowdown during the month.
Markit’s flash US manufacturing purchasing manager’s index (PMI) came in at 52.6, the lowest level in 25 months.
Economists had projected that Markit’s PMI was 54, according to Bloomberg.
The manufacturing sector has this year suffered amid a strong dollar and weaker global demand.
“November’s flash PMI survey indicates that the manufacturing sector lost some growth momentum after the nice pick up seen in October, but still suggests the goods producing sector is expanding at a robust pace which should help support wider economic growth in the fourth quarter,” wrote Markit’s Chris Williamson in the release.
“Domestic demand appears to be holding up well, but the sluggish global economy and strong dollar continue to act as dampeners on firms’ order book growth.”
Incoming new work grew at the slowest level in two years, as the index of new orders from abroad went negative.
Manufacturers signalled a slowdown in their purchasing activity and inventories. And, cautious about their business outlook, they hired fewer people.
The November release “shows broad softness across US manufacturing activity and brings the Markit series closer in line with the ISM manufacturing index, which has indicated stagnant conditions for the past several months,” according to Barclays economists in a client note. “With the trade-weighted dollar at the highest levels in over a decade, the headwinds facing US manufacturing have yet to subside.”
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