Despite a dip in new orders and export sales, the Markit Flash U.S. Manufacturing Purchasing Managers’ Index (PMI) was up from 55.4 to 56.2 in May.
The output index rose from 58.2 to 59.6, making May the fastest pace for output growth seen since February 2011, and according to the National Association of Manufacturers’ Shopfloor blog, a sign that American manufacturing is rebounding from “weather-related softness” earlier this year.
Output rises at fastest pace in over three years. Some Key points:
- Work on new and existing orders supports growth
- Payrolls continue to increase
- Survey record increase in purchasing activity
The Data was collected 12 – 21 May 2014.
Operating conditions in the US manufacturing sector continued to improve during May, with strong rises in production and output complemented by further payroll growth. After accounting for seasonal factors, the Markit Flash U.S. Manufacturing Purchasing Managers’ Index™(PMI™) improved to 56.2 in May, up from April’s 55.4. Moreover, the latest reading was the strongest recorded by the survey for three months.
Flash U.S. Manufacturing PMI™ Summary
50.0 = no-change on previous month (seasonally adjusted)
|PMI||56.2||55.4||Expansion, faster rate|
|Output||59.6||58.2||Expansion, faster rate|
|New Orders||58.2||58.9||Expansion, slower rate|
|New Export Orders||51.5||51.7||Expansion, slower rate|
|Employment||53.5||53.7||Expansion, slower rate|
|Backlogs of Work||55.9||55.2||Expansion, faster rate|
|Output Prices||50.4||50.9||Rise, slower rate|
|Input Prices||56.3||53.5||Rise, faster rate|
|Stocks of Purchases||51.8||48.7||Expansion, change of direction|
|Stocks of Finished Goods||47.7||49.1||Contraction, faster rate|
|Quantity of Purchases||59.2||56.7||Expansion, faster rate|
|Suppliers’ Delivery Times||46.8||49.5||Lengthening, faster rate|
Decreases in new orders (58.9 to 58.2) and export sales (51.9 to 51.5) were slight, but still indicate growth, albeit at a slower rate.
Other numbers making news?
- Trending up. China’s manufacturing sales and output made a slight uptick in May. The HSBC Flash China Manufacturing PMI increased to 49.7 from 48.1 in April, welcome news after several months of slowdown.
- Trending down. Consumer confidence was down in May, according to data from the University of Michigan and Thomson Reuters. Though the Consumer Sentiment Index has averaged 81.7 for the year, May’s number was down to 81.8 from 84.1 in April.
- Trending up. After experiencing a level unseen since 2007, applications for unemployment assistance are up, but remain low enough to indicate “hiring should remain steady.”
- Trending down. The United Nations has lowered expectations for global economic growth. Forecasts from the United Nations anticipate that the global economy will grow at a slower rate in 2014 and 2015. Their revised forecasts, which take into account a “colder than usual winter in North America,” call for 2.8-percent growth in 2014, and 3.2-percent growth in 2015, down from December’s 3.0 and 3.3 percent figures, respectively. Their forecasts for the U.S., however, have not changed (2.5 percent in 2014 and 3.2 percent in 2015).
What are your thoughts on the Markit Flash numbers in US Manufacturing? Let us know in the comments section below.