Markit index of manufacturing in U.S. fell to 53.9 in December

WASHINGTON – The Markit Economics final index of U.S. manufacturing decreased to an 11-month low of 53.9 in December from 54.8 a month earlier, the London-based group said today.

Figures above 50 for the purchasing managers’ measure indicate expansion. The median forecast in a Bloomberg survey of 15 economists was 54, with estimates ranging from 53 to 54.5. The preliminary reading for December was 53.7.

“The manufacturing sector saw growth of activity lose further momentum at the end of 2014, but that didn’t stop factories from enjoying their best year since the recession,” Chris Williamson, chief economist at Markit, said in a statement. “Companies are citing greater uncertainty about the outlook, especially in export markets, leading to some scaling back of expansion plans.”

The group’s gauge of employment declined to 53 in December from 55.1 the prior month. Orders increased at a faster pace.

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“December saw growth of new orders lift slightly higher, suggesting the environment may already be starting to improve amid lower oil prices,” Williamson said. “Even if global demand remains subdued, a buoyant domestic market should therefore help sustain factory growth in coming months.”

The Markit measure is based on replies from about 85 percent to 90 percent of companies in a poll of more than 600 American manufacturers.

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