US manufacturing PMI rebounds but misses expectations

Manufacturing activity in the US rebounded slightly in January, according to data released on Monday.

Markit’s final US manufacturing purchasing managers’ index rose to 52.4, up a touch from December’s 38-month low of 51.2 but still the second-lowest reading since October 2013 and weaker than the flash estimate of 52.7.

Chris Williamson, chief economist at Markit, said: “Despite picking up slightly, the January PMI reading is one of the worst seen over the past two years, highlighting the ongoing plight of the manufacturing sector.

“One bright light appeared, in that order book growth picked up, led by an upturn in domestic demand. However, hiring remained in the doldrums, suggesting that firms remain cautious in relation to the business outlook and reluctant to expand capacity.”

He said the sector continues to struggle against a backdrop of weak global demand, a strong dollar, slumping investment in the energy sector and rising financial market uncertainty.