Markit's US Manufacturing PMI slipped to 51.0 in October from 51.1 in September, indicating subdued overall improvement, but output increased at second-lowest rate of past three years
November 2, 2012
– Key points:
The latest PMI data from Markit pointed to further subdued overall improvement in U.S. manufacturing business conditions as the sector entered the final quarter of 2012 on a weak footing. Output increased at the second-slowest rate of the past three years, as new order growth lost further momentum. New export business remained a drag on the sector, with a fifth successive monthly decline. Compounding manufacturers’ difficulties was a sharper increase in average input prices during the month.
The headline figure derived from the survey is the Markit U.S. Manufacturing Purchasing Managers’ Index™ (PMI™), which is designed to provide timely indications of changes in prevailing business conditions in the U.S. manufacturing sector. PMI readings above 50.0 signal an improvement in business conditions, while readings below 50.0 signal deterioration. The PMI slipped further in October, edging lower to 51.0, from September’s 51.1. That signalled the weakest overall improvement in manufacturing operating conditions since the sector returned to
growth in October 2009. The downward movement in the PMI mainly reflected a slower rise in new order volumes.
U.S. manufacturers’ receipts of new orders rose in October, but the rate of expansion was broadly in line with July’s 34-month low. Undermining growth of total new business was a fifth successive monthly fall in new export orders.
Markit U.S. Manufacturing PMI™ – final data, October 2012 PDF