20 Feb 2015
US manufacturing remains strong in February
FXStreet (London) - The seasonally adjusted Markit Flash US Manufacturing Purchasing Managers’ Index came in at 54.3, up from 53.9 in January and has now registered above the 50.0 no-change value for almost five and-a-half years. The latest reading was the highest since last November, but still weaker than the average for 2014 as a whole (55.9).
Slower rates of new business and employment growth were the main factors weighing on the headline index in February.
According to the Markit survey, manufacturing companies indicated a robust and accelerated expansion of production volumes during February. The latest increase in output was the most marked since October 2014, with survey respondents noting that improving economic conditions and rising client spending continued to boost production schedules. Overall new order levels increased again in February, which marked five-and-a-half years of continuous new business expansion across the manufacturing sector.
However, the latest rise in new work was the slowest for 13 months and export sales were close to stagnation in February. Some firms suggested that weaker demand for oil and energy infrastructure projects had weighed on new business intakes. Meanwhile, there were reports that subdued underlying export demand had contributed to softer gains in new work from abroad.
Commenting on the flash PMI data, Chris Williamson, Chief Economist at Markit said: “Factory output growth ticked higher for a second successive month in February, suggesting the goods-producing sector is on course to make a robust contribution to the economy in the first quarter.
“The production upturn occurred despite widespread delivery delays caused by heavy snowfall and port strikes, which may have also been a factor behind the near-stagnation of exports, suggesting the underlying picture may have been one of slightly stronger growth.”
Slower rates of new business and employment growth were the main factors weighing on the headline index in February.
According to the Markit survey, manufacturing companies indicated a robust and accelerated expansion of production volumes during February. The latest increase in output was the most marked since October 2014, with survey respondents noting that improving economic conditions and rising client spending continued to boost production schedules. Overall new order levels increased again in February, which marked five-and-a-half years of continuous new business expansion across the manufacturing sector.
However, the latest rise in new work was the slowest for 13 months and export sales were close to stagnation in February. Some firms suggested that weaker demand for oil and energy infrastructure projects had weighed on new business intakes. Meanwhile, there were reports that subdued underlying export demand had contributed to softer gains in new work from abroad.
Commenting on the flash PMI data, Chris Williamson, Chief Economist at Markit said: “Factory output growth ticked higher for a second successive month in February, suggesting the goods-producing sector is on course to make a robust contribution to the economy in the first quarter.
“The production upturn occurred despite widespread delivery delays caused by heavy snowfall and port strikes, which may have also been a factor behind the near-stagnation of exports, suggesting the underlying picture may have been one of slightly stronger growth.”