Renewable Energy

U.S. manufacturing activity growth near 10-year low - Markit

Credit: REUTERS/WILLIAM DESHAZER

U.S. manufacturing growth sputtered in May, measuring its weakest pace of activity in nearly a decade and new orders fell for the first time since August 2009 as the U.S.-China trade war intensified, data from IHS Markit showed on Thursday.

May 23 (Reuters) - U.S. manufacturing growth sputtered in May, measuring its weakest pace of activity in nearly a decade and new orders fell for the first time since August 2009 as the U.S.-China trade war intensified, data from IHS Markit showed on Thursday.

In its "flash" Purchasing Managers Index for May, Markit said its U.S. Manufacturing PMI declined to 50.6 from a final reading of 52.6 in April, marking the lowest level since September 2009. Wall Street economists polled by Reuters had a consensus forecast of 52.5.

A reading above 50 indicates growth.

The weakness in manufacturing was mirrored to a large degree in the services sector, where Markit's flash Services Business Activity Index dropped to 50.9 this month from 53.0 in April, the lowest since February 2016. Economists had forecast a reading of 53.2.

The combined softness in the two readings brought Markit's overall U.S. Composite Output Index to 50.9, the lowest since March 2016, from 53.0 last month.

“Growth of business activity slowed sharply in May as trade war worries and increased uncertainty dealt a further blow to order book growth and business confidence," IHS Markit Chief Business Economist Chris Williamson said in a statement.

(Reporting By Dan Burns Editing by Chizu Nomiyama)

((Daniel.Burns@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More