PMI: US Manufacturing Growth Hits A Three Year Low

Ford Assembly Line Car Auto Manufacturing Production U.S. EconomyWorkers build a Ford Focus on the assembly line at Ford Motor Co.’s Wayne Michigan Assembly Plant.

Photo: Bill Pugliano/Getty Images

UPDATE:The U.S. manufacturing industry grew at its slowest pace in nearly three years, but continued to outpace peers in Europe and Asia, new data out of Markit Economics shows.

The key activity index showed growth at 51.4, below a preliminary reading of 51.8.

A reading above 50 indicates expansion.

Nearly across the board, sub-indicators registered greater weakness in the country. Output and new orders both grew at a slower pace than in June, falling to 51.7 and 51.0, respectively.

Employment also slackened marginally, off 10 basis points to 52.7.

“Firms continued to take on extra staff, but hiring is nothing like as widespread as earlier in the year,”¬†Chris¬†Williamson, Chief Economist at Markit, said. “Companies are clearly taking a cautious approach to recruitment and the job market will most likely remain subdued until global economic uncertainty begins to lift.”

Below, key output from the report.

US PMI

Photo: Markit Economics

US PMI

Photo: Markit Economics

ORIGINAL:

Minutes away from the second big data point of the day: U.S. PMI.

Economists surveyed by Bloomberg forecast the Markit Economics report will dip from June’s 52.5 reading, falling to 51.8 in July.

If that holds, it would match a preliminary reading from Markit made earlier this month.

The announcement is scheduled for 8:58 a.m.

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