Economy
Markit's Flash PMI Hits More Than 2-Year Low in November
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Monday brought a mixed view of economic data. First seen was the Chicago Fed National Activity Index improving, but still barely negative in October. Now the Markit Flash U.S. Manufacturing PMI for manufacturing fell in November to its lowest reading in 25 months and reversing the rise seen in October.
November data indicated a setback for U.S. manufacturing sector growth. This is not what some market watchers may be hoping for considering that there was a modest rebound recorded during the month of October. November’s Flash PMI reading of 52.6 was lower than the 54.1 reading in October. The seasonally adjusted PMI data pointed to the slowest improvement in overall business conditions since October 2013.
An overall decline in the headline index in November reflected weaker contributions from all five PMI components. It was shown up front that there were slower rates of output, new orders and employment growth. Also shown was a renewed drop in new export sales during November.
While many reports are backward looking, investors and economists might want to consider that the Flash PMI data for manufacturing companies was collected between November 12th and 20th. Markit refers to the overall data as still being robust, but production growth has moderated since the previous month and was slightly weaker than its average for 2015.
Markit’s PMI data (both the flash and final reports) are derived from information collected by Markit from a different panel of companies to those that participate in the ISM Report on Business. Just keep in mind that Markit specifically says that no information from the ISM survey is used in the production of Markit’s PMI.
Additional data, edited down, was seen as follows:
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