Markit US manufacturing PMI ticks up in November

Manufacturing activity grew more than initially estimated in November, according to data released on Thursday.

Markit’s final US manufacturing purchasing managers’ index rose to 54.1 last month from 53.4 in October and the flash reading of 53.9.

This was the joint-highest level since March 2015, signalling a robust improvement in manufacturing performance.

Manufacturing companies reported a sharp rise in new business volumes, mainly on the back of domestic sales as new orders from abroad increased only marginally from the previous month in part due to the strong dollar.

Chris Williamson, chief business economist at IHS Markit, said: “The final PMI numbers have come in even stronger than the preliminary flash reading, adding to signs of buoyant business conditions in the US manufacturing sector.

“The stronger dollar is hurting exporters, but the flip-side of the exchange rate appreciation is lower import costs, which have in turn helped to ameliorate the impact of rising global commodity prices compared to other countries. However, although employment rose, the survey found ongoing caution in respect to hiring new staff, linked in turn to uncertainty about the outlook and worries about rising costs.”