Markit's US manufacturing PMI hits lowest level in over three years

Markit’s US manufacturing PMI came in at 51.2 in December, down from 52.8 in November and a flash estimate of 51.3, hitting its lowest level since October 2012.

Although still above the 50 threshold that separates expansion from contraction, the reading was much weaker than the survey average of 54.2 and pointed to only a marginal upturn in operating conditions.

Markit’s chief economist Chris Williamson said: “The manufacturing sector saw a disappointing end to 2015, and its plight looks set to continue into the New Year as headwinds show no sign of abating any time soon.

“The strong dollar is hurting exporters as well as hitting domestic sales as firms compete against inflows of cheap imports. Low oil prices are meanwhile hitting demand for goods and machinery from the energy sector.”

Markit said there are signs consumers are becoming more cautious in relation to spending as interest rates lift off their historic lows and overseas demand remains in the doldrums.