US manufacturing output on the wane

25 May 2012

Confidence in the US economy has taken another hit following the publication of new data relating to the country's manufacturing industry.

Markit's latest flash purchasing managers' index (PMI) for America - which was released yesterday (24 May) afternoon - revealed that output in this sector has dipped markedly this month to a level of 53.9.

This represents a significant slide on the gauge reading - in which any score above 50 displays growth - of 56 posted in April and is evidence of the fact the US is by no means immune to the ongoing financial crisis in the eurozone, as well as weakness in the Chinese economy.

Indeed, Markit attributed this decline primarily to the fact export orders from across the Atlantic have slowed down.

Chris Williamson, chief economist at the group, commented: "US manufacturing seems to be repeating the trend seen in the previous two years, whereby a strong start to the year loses momentum as summer approaches."

By Asim Shah

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