US manufacturing activity is at its lowest level since July.
Markit’s US manufacturing PMI reading for October came in at 55.9, missing expectations for the reading to be unchanged from the flash reading of 56.2.
This was expected to be down from a reading of 57.5 in September, though any reading over 50 indicates expansion in the manufacturing sector.
According to Markit’s latest release, “October data highlighted a slowdown in the ongoing U.S. manufacturing sector recovery, with output and new business growth both moderating during the latest survey period. Manufacturers pointed to a weaker contribution from export sales in October, but job creation remained resilient. Meanwhile, input cost inflation was the weakest since April and factory gate charges rose at a slower pace.”
Job gains October remained close to September’s recent peak.
Commenting on the data, Markit senior economist Tim Moore said, “a solid rate of manufacturing job creation was sustained in October, which provides an early indication that domestic labour market conditions have continued to strengthen through the final quarter.”
Markit’s latest US report comes after eurozone manufacturing PMIs earlier this morning showed that overall, manufacturing activity in the economic bloc rose marginally to 50.6 from 50.3.