Markit US manufacturing PMI ticks lower in August

Markit’s final manufacturing purchasing managers’ index fell to 52.0 in August from 52.9 the month before and the flash estimate of 52.1.

Still, it remained above the 50.0 mark that separates contraction from expansion.

Markit said softer rates of new order and employment growth were the main factors weighing on the headline index in August.

Chief economist Chris Williamson said: “Despite the PMI falling in August, the survey suggests the third quarter is shaping up to be the best quarter so far this year for manufacturing, with output growth picking up compared to the first half of the year on the back of improved export sales.

“The overall rate of expansion remains only modest, however, and the upturn fragile. Weak domestic demand remains a drag on order books. Concerns about the outlook have also resulted in a marked reduction in the rate of job creation.”