Markit Manufacturing: "Manufacturing Output Growth Weakens..."

The February US Manufacturing Purchasing Managers' Index conducted by Markit came in at 50.7, down 1.2 from the 51.9 final January figure. Markit's Manufacturing PMI is a diffusion index: A reading above 50 indicates expansion in the sector; below 50 indicates contraction.

Here is an excerpt from Chris Williamson, Chief Business Economist at IHS Markit in their latest press release:

"Manufacturing production and order book trends deteriorated markedly in February as producers struggled against the double headwinds of falling export sales and supply chain delays, both in turn often linked to the coronavirus outbreak."

"Any growth in sales was once again largely driven by domestic consumers, though even here the rate of growth was weakened considerably compared to late last year."

"Historical comparisons against official data indicate that the survey is consistent with factory production and orders both falling at annualised rates of around 3%, with manufacturing jobs being lost at a monthly rate of roughly 20,000."

"While trade war fears have eased, helping push firms’ expectations for future growth to the highest since last April, coronavirus-related supply chain issues threaten to constrain production in coming months. At the same time, companies have become increasingly concerned that the COVID-19 outbreak will also hit demand, which is reportedly already cooling amid uncertainly leading up to the presidential election. Recent stock market volatility could also further dampen consumer spending and deter business investment." [Press Release]

Here is a snapshot of the series since mid-2012.

(Click on image to enlarge)

Markit Manufacturing PMI