US manufacturing PMI slips to 16-month low in May, Markit says
The growth rate of manufacturing activity in the United States unexpectedly slowed to a 16-month low this month, according to data released on Thursday by Markit.
The Markit 'flash' US manufacturing purchasing managers' index (PMI) for May declined to 53.8 from April's reading of 54.1.
While the reading still denotes an expansion in activity, as indicated by any figure over 50, analysts had estimated a rise to 54.5.
This was the second month running that output growth weakened after March's six-month high, and signalled the weakest improvement in overall business conditions since the start of 2014, Markit said.
May saw the slowest rise in new orders since January 2014, though the pace of job creation remained "robust". Input costs, meanwhile, rose for the first time this year.
Markit's chief economist Chris Williamson said the survey results "add[ed] to fears that the strong dollar is weighing on
the US economy and hitting corporate earnings".
He said: “Despite signs of price pressures picking up, the survey is likely to encourage policymakers to err on the side of caution, especially in relation to any further damaging impact of the stronger dollar on growth and earnings if policy were to be tightened. Any decision on hiking interest rates is therefore likely to be put off until later in the year.”