February Markit Manufacturing Accelerates

The February US Manufacturing Purchasing Managers' Index conducted by Markit came in at 56.0, up 1.8 from the 54.2 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:

“The US PMI surveys tell a tale of two economies in February, with any slowdown story confined to the goods-producing sector. While manufacturing struggled, with the surveys consistent with a nearstalling of factory output and order books, the service sector remained encouragingly resilient, enjoying its strongest burst of activity for seven months." [Press Release]

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

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Markit Manufacturing PMI

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 ).

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Markit and ISM Manufacturing PMI

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

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Markit and ISM Manufacturing PMI

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