Thursday 23 May 2013

Economic Buzz: U.S. Manufacturing PMI Falls


The Markit Flash U.S. Manufacturing Purchasing Managers' Index  ( PMI )  fell for the second month running in May, falling to its lowest readingsince last October. At 51.9, down marginally from April's 52.1, the flash PMIindex, which is based on around 85% of usual monthly replies, was consistentwith a moderate improvement in overall manufacturing business conditions.
Commenting on the flash PMI data, Chris Williamson, Chief Economist at Markitsaid: "With the PMI hitting a seven-month low, the U.S. manufacturingeconomy continues to show signs of weakening. Growth has slowed sharply inrecent months, down from an annualized pace of 4.9% in the first quarter to just1% in May. "The goods-producing sector is therefore likely to have providedonly a modest boost to the U.S. economy in the second quarter, providing furtherworrying signs that growth remains lackluster. "Slower growth could belinked to a combination of fiscal drag hurting demand at home while at the sametime many export markets remain in fragile states. The latter led to a reneweddecline in export orders in May. "There was also disappointing news inrelation to job creation. With employment growing at the slowest rate since lastOctober, the survey suggests that the Fed cannot risk tapering its stimulus anytime soon."
Source by Commodity Insights

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