US manufacturing sector slows down in November

The final reading of the Markit manufacturing purchasing managers’ index for November declined from 54.1 in October to 52.8, reaching its lowest level since October 2013, although the figure was marginally above the 52.6 flash estimate released last month.

Markit added the figure was also weaker than the post-crisis average of 54.3 and indicated a relatively subdued performance in the sector over the month.

New business growth was the main drag on the index in November, as volumes of new work expanded at the slowest pace for over two years, on the back of weak export demand and lower client confidence.

Meanwhile, backlogs of work fell for the first time in 12 months, while output grew at a sedated pace and manufacturers erred on the side of caution when it came to hiring new staff, as jobs growth fell below the post-crisis average.

“Growth is being driven by domestic demand, with exports falling back into decline,” said Markit’s chief economist Chris Williamson.

“The uncertain global picture and strong currency are key areas of worry to manufacturers, which led to a more cautious approach to hiring during the month.

“However, there’s nothing new that will overly concern policymakers, leaving the door open for rates to rise later in the month.”