Markit's US manufacturing PMI shows weakest performance since 2009

Markit’s final US manufacturing purchasing managers’ index came in at 50.7 in May, up from the flash estimate of 50.5 but down from 50.8 in April and pointing to the weakest performance since September 2009.

New business growth eased to its weakest so far this year, contributing to a decline in production volumes for the first time in over six-and-a-half years.

Markit said survey respondents noted that subdued client demand and heightened economic uncertainty had resulted in challenging trading conditions.

Still, manufacturing payroll numbers picked up slightly last month, which firms linked to new product launches and sustained optimism over the longer-term business outlook.

Chris Williamson, chief economist at Markit, said: “The survey data indicate that factory output fell in May at its fastest rate since 2009, suggesting that manufacturing is acting as a severe drag on the economy in the second quarter.

“Payroll numbers are under pressure as factories worry about slower order book growth, in part linked to falling export demand but also as a result of growing uncertainty surrounding the presidential election.”