Manufacturing Growth Slows In November

Composite monthly growth in Markit's US manufacturing sample slowed in November, to a 10-month low of 54.8 from 55.9 in October. The mid-month flash for November was 54.7. Looking at details, output slowed for a 3rd straight month and is also at a 10-month low for this sample. New orders also slowed and are also at a 10-month low with export orders in contraction. A plus in the report is a strong gain for employment, yet whether Markit's sample will continue to hire is uncertain given the slowing in new orders. Price readings in this report remain soft, reflecting falling fuel prices for inputs and strong competition for finished goods. The manufacturing sector has been flat going into year end and these results point to moderation for the upcoming ISM report at 10:00 a.m. ET this morning, a report that has been running very hot relative to other data.

Recent History Of This Indicator:
The Markit PMI manufacturing flash index reported slowing growth so far for November, to 54.7 from 55.9 in October and from 56.2 in the October flash. The 1.2 point decline was deceleration for this index which is now at its slowest rate since the heavy weather of January. Main negatives included slowing in output and, not encouragingly, for new orders. Weakness in exports was especially noted with the strong dollar blamed. A positive was strength in employment.