Markit's US manufacturing PMI touch ahead of estimate

Markit’s final US manufacturing purchasing managers’ index fell to 51.3 in February from 52.4 the previous month.

Although the index was a touch higher than the flash estimate of 51, it was still the second-lowest reading since October 2012.

Markit pointed to one of the weakest improvements in overall business conditions since the recovery began in late-2009.

Chris Williamson, chief economist at Markit said: “The February data add to signs of distress in the US manufacturing economy. Production and order book growth continues to worsen, led by falling exports. Jobs are being added at a slower pace and output prices are dropping at a rate not seen since mid-2012.

“The deterioration in the manufacturing sector’s performance since mid-2014 has broadly tracked the dollar’s rise, which makes US goods more expensive in overseas markets and leads US consumers to favour cheaper imported goods.”

Williamson also highlighted other headwinds such as the downturn in the oil sector, heightened uncertainty due to financial market volatility, worries about global growth and growing concerns about the presidential election.