US manufacturing PMI unexpectedly slips in May

Markit’s flash US manufacturing purchasing managers’ index fell to 50.5 in May from 50.8 in April.

This is only a touch above the 50 mark that separates contraction from expansion and below the 51.0 reading expected by economists.

Markit said a renewed fall in production was one key factor weighing on the headline index in May, along with softer new order growth and further cuts to stocks of inputs.

Chris Williamson, chief economist at Markit, said: “The weak manufacturing PMI data cast doubt on the ability of the US economy to rebound from its disappointing start to the year in the second quarter.

“The survey is signalling that manufacturing will act as a drag on economic growth in the second quarter, leaving the economy once again dependent on the service sector, and consumers in particular, to sustain growth.”