US manufacturing little changed in March, according to Markit

Markit’s flash US manufacturing PMI nudged up to 51.4 in March from 51.3 the previous month.

The reading was well below the post-crisis average of 54.1 but above the 50 mark that separates expansion from contraction.

Markit said US factories continued to endure their worst spell for three and a half years, amid headwinds such as reduced spending by the energy sector, a strong dollar, persistent weak global demand and growing uncertainty due to the looming presidential election.

Markit’s chief economist, Chris Williamson, said: “While some comfort might be drawn from the marginal rise in the PMI compared to February, the rate of growth remains worryingly weak and the lack of a stronger rebound is a disappointment, given that many companies reported bad weather to have hit activity in the first two months of the year.

“The persistent weakness seen in March therefore ends a disappointing quarter for manufacturing. When viewed alongside the similar downturn seen in the sister services PMI in February, the survey data are pointing to very modest GDP growth in the first quarter.”