News

US Factory Activity Shrinks for 3rd Month: PMI
The IHS Markit US Manufacturing PMI increased to 39.8 in May of 2020 from 36.1 in April which was a record low due to the coronavirus pandemic and restrictive measures imposed. The reading came above market expectations of 38, flash figures showed. However, it still pointed to a third straight month of falling factory activity amid significant contractions in production and new orders, as businesses slowly returned to work amid challenging domestic and foreign demand conditions. The rates of reduction were among the most marked since the depths of the 2009 financial crisis. However, Chris Williamson, Chief Business Economist at IHS Markit said that ‘encouragement comes from the survey indicating that the rate of economic collapse seems to have peaked in April. In the absence of a second wave of COVID-19 infections, the decline should moderate further in coming months as measures taken to contain the coronavirus are steadily lifted’.
Published on 2020-05-21

US Manufacturing PMI Revised Lower: Markit
The IHS Markit US Manufacturing PMI was revised lower to 36.1 in April 2020 from a preliminary estimate of 36.9, compared to March's final 48.5. The latest reading was the lowest since early 2009, as output, new orders and exports all fell at record rates due to measures implemented to contain the COVID-19 outbreak. At the same time, employment declined the most since March 2009 amid greater spare capacity, as backlogs of work decreased at the most marked rate for 11 years. On the price front, input costs fell amid lower demand for inputs and a notable decrease in fuel prices, while output charges declined the most since data collection began in May 2007.
Published on 2020-05-01

US Factory Activity Shrinks the Most in 11 Years: Markit
The IHS Markit US Manufacturing PMI fell to 36.9 in April of 2020 from 48.5 in March, below market expectations of 38. The reading pointed to the sharpest contraction in factory activity in 11 years amid the cancellation or postponement of both domestic and foreign orders following the coronavirus pandemic escalation, preliminary figures showed. Production shrank at a record pace; input costs and factory gate charges both fell at the fastest rates for over a decade; factory closures and stay-at-home orders led to a marked downturn in workforce numbers. Despite lower headcounts, firms were able to reduce their backlogs of work due to a substantial drop in new orders. Finally, confidence regarding the outlook for output over the coming year dropped to a fresh low, and was pessimistic for the first time since the series began in July 2012.
Published on 2020-04-23

US Manufacturing PMI Lowest since 2009: Markit
The IHS Markit US Manufacturing PMI was revised down to 48.5 in March of 2020 from a preliminary of 49.2 and below 50.7 in February. The reading pointed to the worst contraction in the manufacturing sector since August of 2009 amid weak domestic and foreign demand conditions following the outbreak of coronavirus. Output contracted solidly, dropping at the sharpest pace for over a decade as factories shutdown and client demand dropped sharply. New orders fell at the joint-fastest pace since June of 2009, commonly linked to demand slumping due to the virus, with firms also registering a solid downturn in new export orders. Manufacturers cut their workforce numbers at the sharpest rate since October of 2009 and input prices rose only slightly. Finally, fears surrounding the longevity of shutdowns and the slow recovery thereafter led to the lowest degree of confidence since data collection for the series began in July of 2012.
Published on 2020-04-01

US Markit Manufacturing PMI Above Forecasts
The IHS Markit US Manufacturing PMI edged down to 49.2 in March of 2020 from 50.7 in February, preliminary estimates showed. The reading pointed to the fastest deterioration in operating conditions since the depths of the financial crisis, although markets were expecting a much worse number (42.8). Figures were buoyed by longer supplier delivery times while steep rates of contraction were seen in production and new orders, both of which fell to the greatest extent since 2009, with many firms linking this to the escalation of preventative measures following the outbreak of COVID-19. Also, firms shed workers at a solid rate in March and input prices increased the least for almost three years. Finally, business confidence was at a record low level due to coronavirus uncertainty.
Published on 2020-03-24

US Manufacturing PMI Revised Lower: Markit
The IHS Markit US Manufacturing PMI was revised slightly down to 50.7 in February of 2020 from a preliminary of 50.8, pointing to the slowest expansion in factory activity in six months, amid historically subdued gains in output and new orders. Also, employment growth slowed despite a renewed rise in backlogs and subdued inflationary pressures continued, with slower growth of costs helping keep selling price inflation muted. Supply chain delays stemming from supplier factory shutdowns in China and the outbreak of coronavirus led to a further deterioration in vendor performance, which reportedly held back output and the processing of backlogs due to a shortage of components. As a result, firms registered a renewed rise in outstanding business and a drop in pre-production inventories Nonetheless, firms registered the strongest degree of optimism for ten months.
Published on 2020-03-02

US Factory Activity Growth Lowest in 6 Months: Markit
The IHS Markit US Manufacturing PMI fell to 50.8 in February of 2020 from 51.5 in January, below market expectations of 51.5, preliminary estimates showed. The reading pointed to the slowest expansion in factory activity since August as output growth was the softest since last July, with firms stating that weak demand conditions and delays in deliveries following the outbreak of the coronavirus in China had dented production. Meanwhile, inflationary pressures remained historically subdued midway through the first quarter amid a slower rise in cost burdens. Firms only raised their charges fractionally as they sought to remain competitive and boost sales. On the other hand, output expectations were the highest in 10 months although firms suggested uncertainty surrounding the impact of coronavirus had weighed on optimism and could further impact production.
Published on 2020-02-21

US Manufacturing PMI Revised Higher: Markit
The IHS Markit US Manuafacturing PMI was revised higher to 51.9 in January of 2020 from a preliminary of 51.7 but still remained below 52.4 reported in December. Output growth was the same as in December and was moderate overall. Also, manufacturers registered a slower and only mild increase in new orders. While domestic demand continued to rise, new export orders fell for the first time since last September. As a result, job creation was the slowest in four months. On the price front, input costs rose amid higher operating expenses, especially metals, as well as tariffs. Firms were reluctant to raise factory gate charges, however, in an effort to stay competitive. Output prices increased at only a fractional pace overall that was the slowest for three months. On the other hand, business confidence improved due to a greater investment in marketing and hopes of a pick up in client demand reportedly drove sentiment to a seven-month high.
Published on 2020-02-03

US Manufacturing Growth at 3-Month Low: PMI
The IHS Markit US Manufacturing PMI fell to 51.7 in January of 2020 from 52.4 in December, below market expectations of 52.5. It was the the slowest increase in factory activity in three months, flash figures showed. Although output continued to rise at a moderate pace, new business growth was only marginal as both domestic and foreign client demand softened. Employment continued to rise albeit at the slowest pace for four months. The softer rise in employment coincided with signs of easing capacity pressures, with January seeing the first fall in backlogs for four months. At the same time, price pressures eased as a weaker increase in cost burdens occurred alongside only a fractional rise in factory gate charges.
Published on 2020-01-24

US Manufacturing PMI Revised Down: Markit
The IHS Markit US Manufacturing PMI was revised slightly lower to 52.4 from 52.5 in December of 2019. It compares with 52.6 in the previous month. Output and new business expanded modestly while employment growth was the second-fastest since May, with firms stating the increase largely stemmed from greater production requirements. On the price front, input price inflation accelerated to a nine-month high as firms stated that higher supplier costs and tariffs had driven prices up. Output charge inflation also quickened to the joint-fastest since February and was solid overall. Companies commonly attributed the rise to the partial pass-through of higher costs on to clients. Finally, business confidence picked up, with optimism reportedly stemming from new product development, new client wins and investment in new facilities.
Published on 2020-01-02

US Manufacturing PMI Matches Forecasts: Markit
The IHS Markit Flash US Manufacturing PMI edged down to 52.5 in December of 2019 from 52.6 in November, matching market expectations. Figures pointed to a small deceleration of factory activity from a seven-month high seen last month. Although the reading was one of the strongest in 2019 it remained below levels seen in 2018. However, business expectations for the year ahead improved, amid reduced fears over trade wars and more favorable financial conditions.
Published on 2019-12-16

US Manufacturing PMI Revised Higher: Markit
The IHS Markit US Manufacturing PMI was revised up to 52.6 in November of 2019 from a preliminary of 52.2 and 51.3 in October. The reading pointed to the strongest expansion in factory activity in seven months, supported by quicker expansions in production and new orders, with both domestic and foreign client demand strengthening. Business confidence remained historically muted, however, as global economic uncertainty continued to weigh on expectations.
Published on 2019-12-02

US Factory Activity Growth at 7-Month High
The IHS Markit US Manufacturing PMI rose to 52.2 in November 2019 from 51.3 in the previous month and beating market expectations of 51.5, a flash estimate showed. The latest reading pointed to the steepest expansion in the factory sector since April, as output increased at the fastest pace in ten months amid strong client demand.
Published on 2019-11-22

US Manufacturing PMI Revised Lower: Markit
The IHS Markit US Manufacturing PMI was revised lower to 51.3 in October 2019 from a preliminary estimate of 51.5 and compared to the previous month's 51.1. The latest reading remained consistent with a modest improvement in the health of the manufacturing sector, as output and new order growth rates accelerated to six-month highs and employment rose at the quickest pace since May.
Published on 2019-11-01

US Factory Activity Growth at 6-Month High
The IHS Markit US Manufacturing PMI rose to 51.5 in October 2019 from 51.1 in the previous month and beating market expectations of 50.7, a preliminary estimate showed. The latest reading pointed to the strongest expansion in factory activity since April, as output, new orders and employment increased at a faster pace.
Published on 2019-10-24

US Manufacturing PMI Revised Higher: Markit
The IHS Markit US Manufacturing PMI was revised slightly higher to 51.1 in September 2019 from a preliminary 51.0 and compared to the previous month's ten-year low of 50.3. The latest reading was the highest since April, but still signaled a modest overall improvement in manufacturing sector business conditions. The quarterly average indicated the worst performance across the sector since the same period in 2009.
Published on 2019-10-01

US Manufacturing Growth Accelerates in September
The IHS Markit US Manufacturing PMI rose to 51.0 in September 2019 from a decade low of 50.3 in the previous month and above market expectations of 50.3, a preliminary estimate showed. The latest reading signaled a modest overall improvement in manufacturing sector business conditions, as both output and new orders grew at a faster pace, and employment rebounded.
Published on 2019-09-23

US Manufacturing PMI Revised Higher: Markit
The IHS Markit US Manufacturing PMI was revised higher to 50.3 in August 2019 from a preliminary estimate of 49.9 and compared to July's final 50.4. Still, the latest reading pointed to the weakest pace of expansion in the manufacturing sector since September 2009, as new export orders fell at the quickest pace since August 2009, linked by many firms to trade wars and tariffs. Also, business confidence dropped to a new series low.
Published on 2019-09-03

US Factory Activity Contracts for 1st Time in a Decade
The IHS Markit US Manufacturing PMI dropped to 49.9 in August 2019 from 50.4 in the previous month and below market expectations of 50.5, a preliminary estimate showed. The latest reading pointed to the first month of contraction in the manufacturing sector since September 2009, as new orders fell the most in ten years led by the largest decline in exports since August 2009.
Published on 2019-08-22

US Manufacturing Growth Weakest in Nearly 10 Years
The IHS Markit US Manufacturing PMI was revised slightly higher to 50.4 in July 2019 from a preliminary estimate of 50.0 and compared to June's 50.6. Still, the latest reading indicated the slowest overall expansion in the manufacturing sector since the height of the financial crisis in September 2009.
Published on 2019-08-01