Friday’s report on the US Manufacturing PMI showed an accelerated increase in the US manufacturing sector in February.
The flash manufacturing PMI survey revealed that the US Manufacturing Purchasing Managers Index rose to 54.3 in February, up from January's final reading of 53.9. However, the reading is still below the last year’s average of 55.9. New orders growth was the slowest in 13 months, largely due to export sales, as foreign orders were almost unchanged.
Manufacturers were the first to take the brunt of the strong dollar and apparent weakness in other economies. Enterprises less actively hired staff this month. In light of the upcoming report from the US Labor Department, such data is alarming. It is most likely that there will be a slowdown in the number of employed in February.
However, purchasing managers note a rise in industrial production on the back of consumer’s buying power on the domestic market and better economic conditions. Thus, the manufacturing output in the first quarter is likely to make a strong contribution to the US GDP growth.
