Markit Manufacturing: "PMI Falls To lowest Since September 2009"

The July US Manufacturing Purchasing Managers' Index conducted by Markit came in at 50.4, down 0.2 from the 50.6 final June 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:

"US manufacturing has entered into its sharpest downturn since 2009, suggesting the goods-producing sector is on course to act as a significant drag on the economy in the third quarter. The deterioration in the survey’s output index is indicative of manufacturing production declining at an annualised rate in excess of 3%." [Press Release]

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

Here is an overlay with the equivalent PMI survey conducted by the Institute for Supply Management (see our full article on this series here, note that ).

The next chart uses a three-month moving average of the two rather volatile series to facilitate our understanding of the current trend.