Markit US PMI manufacturing dropped to 53.9, down from 55.3 and missed expectation of 55.1. It’s a 13-month low. PMI services dropped to 53.4, down from 54.7 and missed expectation of 55.0. It’s a 11-month low. PMI composite dropped to 53.6, down from 54.7. It’s the lowest reading in 19-month. .
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
“The flash PMIs bring signs of the US economy ending 2018 on a softer note. With business activity expanding at the slowest rate for one and a half years, the surveys indicate that the pace of economic growth has faded to 2.0% in December, albeit closer to 2.5% for the fourth quarter as a whole.
“Importantly, although growth remains relatively robust, momentum is being lost and is likely to continue to fade as we move into 2019. New order inflows hit the lowest since April of last year and expectations regarding future business growth have slipped to the lowest for two-and-a-half years.
“The surveys reveal greater caution in relation to spending amid uncertainty about the economic outlook, linked in part to growing geopolitical concerns and trade wars.”
“The weaker picture of current and future business growth has curbed appetite for hiring. Jobs growth inched down to the lowest for one and half years but remains consistent with non-farm payrolls rising in December by around 180,000.
“Price pressures have meanwhile cooled as lower oil prices feed through, yet rising tariffs remain a concern for many companies, keeping input cost inflation above the survey’s long-run average.”
