US manufacturing is still so-so.
On Thursday, we got two purchasing manager’s indexes (PMI).
Markit Economics’ PMI came in at 53.1, the second-lowest level since October 2013.
Economists had forecast a print of 53.0, unchanged from the prior month.
The report said that employment growth slowed again, and was the biggest negative factor weighing down the headline index. Output growth increased slightly from the prior month.
Markit chief economist Chris Williamson wrote, “We must remember, however, that the manufacturing sector only accounts for around one-tenth of the economy, and robust service sector data – as indicated by last week’s flash PMI results – indicate that the wider economy remains in good health, albeit with signs that businesses have become more worried about the outlook.”
And, the Institute of Supply Management’s index was 50.2%, the lowest since May 2013, missing expectation for 50.6%, and down from 51.1% in August.
Seven manufacturing industries reported growth, including printing and food, while 11 reported contraction, including primary metals and electrical equipment.
A respondent in the Petroleum & Coal Products industry said that low oil prices are still impeding profits. And, someone in fabricated metal products said there were “concerns about China downturn and its effect on our consumer confidence.”
In September, all seven regional manufacturing surveys fell into contraction. And according to TD Securities, US manufacturing is in recession.