Markit's US manufacturing PMI falls to eight-month low in May

US manufacturing activity slipped to an eight-month low in May, according to figures released on Thursday.

Markit's final manufacturing purchasing managers' index nudged down to 52.7 from 52.8 in April. A reading above 50.0 indicates expansion.

Markit said weaker new business growth and softer job creation helped to offset a marginally stronger upturn in production volumes. New order levels increased again in May, but the rate of expansion was the least marked recorded since September 2016, mainly due to subdued client demand.

Some manufacturers also cited weak export sales, as highlighted by a slower upturn in new work from abroad than that seen in April.

Chris Williamson, chief business economist at IHS Markit, said: "Manufacturing growth momentum continued to ebb in May, down to its weakest since just before the presidential election.

“Manufacturing output, order books and employment all grew at only modest rates as sluggish sales prompted firms to scale back hiring. Exports sales remained especially lacklustre, hampered in part by the relatively strong dollar. The survey also brought signs of companies becoming more cautious about holding inventory."