US Manufacturing Growth Slows to Decade Low
The IHS Markit US Manufacturing PMI dropped to 50.6 in May 2019 from the previous month's 52.6 and below market expectations of 52.5, a preliminary estimate showed. The latest reading pointed to the weakest pace of expansion in the manufacturing sector since September 2009.
5/23/2019 1:53:47 PM
Underlying data indicated a broad-based slowdown in the rates of expansion for output, employment and pre-production inventories, while new orders declined for the first time since August 2009.
New orders were stymied by reports of weaker overall demand conditions and hesitancy among clients to place orders. The fall in new business was only fractional, but signalled a marked turnaround from the solid rise seen in April. Data suggested that demand from both domestic and foreign clients declined during the month, as exports also fell.
In contrast to the trend seen for the service sector, manufacturers raised their output prices in May. That said, the rate of increase was only slight. Factory input costs meanwhile rose at the weakest rate for nearly two years, in part reflecting increased price competition among suppliers amid signs of excess capacity developing.