Markit’s purchasing manager’s index for U.S. manufacturing showed slowing growth, with a reading of 53.7.
That’s down from 55 in December.
It’s a three-month low.
New export orders contracted, meaning the sub-index slipped below 50.
Markit’s Chris Williamson said weather was to blame, and that while growth has slowed it remains robust:
“Survey respondents reported the weakest growth of output and new orders for three months in January, but with many companies blaming exceptionally cold weather for production and supply chain disruptions, the underlying trend looks to have remained robust.
“The ongoing expansion suggests that the goods producing sector is on course to contribute to another quarter of solid economic growth in the first quarter, and is also helping sustain a decent rate of job creation. The survey is broadly consistent with 10,000 jobs being created per month in the manufacturing sector which, added to the signal from the flash services PMI, points to non-farm payroll growth in the region of 200,000 in January. “The improvement supports the view that the economy is withstanding the ongoing tapering by the Fed. However, it will be important to see the indices bounce back from January’s weather-related weakness to be sure of this resilience.”
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