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Updated: U.S. Flash PMI Falls To 54.7 In November

By Kitco News
Thursday November 20, 2014 9:45 AM

Editor's Note: The article was updated to include more information from the report.

(Kitco News) - The U.S. manufacturing sector continues to lose some momentum in November, according to the latest Purchasing Managers Index data.

Thursday, the private research firm Markit said its November flash estimate PMI fell to a level of 54.7, compared to October’s final reading of 55.9. According to consensus reports, economists were expecting to see a small rise to 56.2.

In the report, Markit said that November’s performance of the manufacturing sector was the “the weakest overall improvement in business conditions since the snow-related setback in January.”

The report noted that new business growth was the biggest negative influence on the headline index as new orders fell to 55.2, down from October's level of 57.1. However despite the slowdown, the firm noted some resiliency in the labor market as employment growth was slightly strong than in previous months as the employment index rose to 55.1, compared to the previous reading of 54.9; however, there are some concerns this trend might not last.

“The manufacturing sector is undergoing a marked slowdown in the fall after enjoying a buoyant summer. Output growth has now fallen for three straight months, taking the pace of expansion down to its lowest since the start of the year. Unlike January, however, this time the weaker rate of growth can’t be blamed on the weather,” said Chris Williamson, chief economist at Markit, “There’s some reassurance from manufacturers continuing to boost their payroll numbers at a robust pace, but with backlogs of work showing almost no growth, the rate of job creation looks likely to moderate in coming months unless new order inflows pick up again.”

Ahead of the flash estimate, the New York Federal Reserve said Monday its Empire State manufacturing survey rose a reading of 10.2, up from October’s level of 6.2.

A reading above 50.0 signals an improvement in business conditions, while readings below 50.0 signal deterioration. Later Thursday morning the market will receive regional manufacturing data from the Philadelphia Federal Reserve.

By Neils Christensen of Kitco News; nchristensen@kitco.com



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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