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Thursday, November 20, 2014

PMI Manufacturing Index Reports Slowing Growth

Markit's sample is reporting slowing growth so far this month, to 54.7 from 55.9 in October and from 56.2 in the October flash. The 1.2 point decline is noticeable deceleration for this index which is now at its slowest rate since the heavy weather of January.

Main negatives include slowing in output and, not encouragingly, for new orders. Weakness in exports is especially noted with the strong dollar blamed. A positive is strength in employment. Price data show easing pressure for raw materials to the slowest rate of increase in 1-1/2 years.

The headline index for this report has been trending lower and is pointing to slowing for the fourth quarter. But other reports have been mixed. Coming up next at 10:00 a.m. ET is the November report from the Philly Fed where growth has been very strong.

Recent History Of This Indicator:
The PMI manufacturing index (final) for October was a soft month for Markit's US manufacturing sample where the composite index slowed to 55.9, down from 56.2 at mid-month and down sizably from 57.5 in final September. The comparison with September points to slowing growth for October's manufacturing activity. Weighing the most on the composite was the most important reading of all, in new business where monthly growth slowed to its lowest rate since the severe weather of this year's January. The report cited especially soft growth in export sales and noted the slowest increase in total backlog orders since January.

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