American flash PMI decreases
Source: Agencies |
July 25, 2012, Wednesday
|
Print Edition
Print Edition
US manufacturing this month expanded at its slowest pace since late 2010, hobbled by weak overseas demand for American goods, though a rise in domestic orders helped cushion the blow.
Financial information firm Markit yesterday said its US "flash" manufacturing Purchasing Managers' Index for July fell to 51.8 from 52.5 in June. July marked the fourth consecutive month of slower growth and the sector's weakest showing since December 2010.
The index remained above 50, indicating factory activity continued to expand, only less rapidly.
New orders for exports fell outright for the second straight month, the first back-to-back decline in nearly three years, Markit said. Recession in Europe dented demand.
"The US manufacturing sector is clearly struggling under the pressure from falling exports," said Chris Williamson, chief economist at Markit.
"Reassuringly, domestic demand appears to be showing ongoing signs of resilience, encouraging firms to take on more staff."
When including domestic demand, new orders grew, though the reading of 51.9 showed the pace of growth slowed. June's tally was 53.7. The employment index rose to 52.9 in July from 52.8.
Even so, economists worry that the broader US economy, which grew at a 1.9 percent rate in the first quarter, has since lost momentum. A poll of 74 economists polled by Reuters expects April-June growth to have slowed to 1.5 percent.
Last year, manufacturing had been a bright spot in an atmosphere of otherwise sluggish growth, but it too has showed signs of slowing over the last few months.
The US Labor Department said employers added fewer than 100,000 new jobs in June for the third consecutive month.
Wall Street is bracing for more monetary easing from the Federal Reserve before the year ends.
Financial information firm Markit yesterday said its US "flash" manufacturing Purchasing Managers' Index for July fell to 51.8 from 52.5 in June. July marked the fourth consecutive month of slower growth and the sector's weakest showing since December 2010.
The index remained above 50, indicating factory activity continued to expand, only less rapidly.
New orders for exports fell outright for the second straight month, the first back-to-back decline in nearly three years, Markit said. Recession in Europe dented demand.
"The US manufacturing sector is clearly struggling under the pressure from falling exports," said Chris Williamson, chief economist at Markit.
"Reassuringly, domestic demand appears to be showing ongoing signs of resilience, encouraging firms to take on more staff."
When including domestic demand, new orders grew, though the reading of 51.9 showed the pace of growth slowed. June's tally was 53.7. The employment index rose to 52.9 in July from 52.8.
Even so, economists worry that the broader US economy, which grew at a 1.9 percent rate in the first quarter, has since lost momentum. A poll of 74 economists polled by Reuters expects April-June growth to have slowed to 1.5 percent.
Last year, manufacturing had been a bright spot in an atmosphere of otherwise sluggish growth, but it too has showed signs of slowing over the last few months.
The US Labor Department said employers added fewer than 100,000 new jobs in June for the third consecutive month.
Wall Street is bracing for more monetary easing from the Federal Reserve before the year ends.
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