Markit's flash US manufacturing PMI bounces back

Markit’s flash manufacturing purchasing managers’ index printed at a three-month high of 51.4 in June, up from 50.7 in May and ahead of economists’ expectations for a reading of 50.8.

Markit said the relatively weak PMI readings during April and May meant the average for the second quarter of 2016 – 51.0 – was the lowest since the third quarter of 2009.

However, the latest reading signals a recovery in growth momentum following the six-and-a-half year low hit in May.

Higher output levels provided a boost to the headline index in June, along with faster growth of new orders and employment, Markit said.

Chief economist Chris Williamson said: “The flash PMI for June brought welcome news of improved performance of manufacturing, but the sector still looks to have acted as a drag on the economy in the second quarter, leaving the economy reliant on the service sector and consumers in particular to drive growth.

“Any improvement could be largely traced to better export sales, in turn linked to the weakening of the dollar compared to earlier in the year. Domestic demand was again worryingly weak, especially from business customers, meaning overall growth of order books remained subdued.