US Manufacturing Shows Slowing Growth

Markit's US manufacturing sample continues to report slowing growth, much like Empire State's sample whose December report was posted yesterday. Markit's PMI December flash fell to 53.7, still above 50 to indicate monthly growth but the slowest growth in 11 months and down from 54.8 in final November and 54.7 in the November flash. Details also show 11 month lows for growth in both new orders and output while employment growth is also slowing. Cost inflation, in a reflection of plummeting oil prices, is at a 19 month low. November was a very good month for the manufacturing sector, based not only on yesterday's industrial production but also the Philly Fed's report for the month, but the early indications on December are not favorable. Watch for the Philly Fed's report for December on Thursday.

Recent History Of This Indicator:
The Markit PMI manufacturing index (final) 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 was also at a 10-month low for this sample. New orders also slowed and were also at a 10-month low with export orders in contraction. A plus in the report was a strong gain for employment, yet whether Markit's sample will continue to hire is uncertain given the slowing in new orders. The Markit November was notably softer than ISM and several regional surveys.