1 Jul 2015
US manufacturing PMI drops to 53.6 in June
FXStreet (Mumbai) - The seasonally adjusted final Markit U.S. Manufacturing Purchasing Managers’ Index dropped to 53.6 in June from 54.00 in May, its lowest reading since October 2013.
Strong USD hurts new export orders
New work increased at a slightly faster pace than the 16-month low seen in May, however, new export orders dropped for the third successive month, which is the longest continuous period since the second half of 2012, mainly due to a stronger USD.
As per Chris Williamson, Chief Economist at Markit, “The slowdown is largely linked to a third consecutive monthly fall in exports, in turn attributed by many companies to the strong dollar undermining international competitiveness.”
The report also shows the manufacturing sector witnessed the fastest increase in payroll numbers since September 2014. Average cost burdens rose for the second month running in June, leading to a modest increase in factory gate charges.
Strong USD hurts new export orders
New work increased at a slightly faster pace than the 16-month low seen in May, however, new export orders dropped for the third successive month, which is the longest continuous period since the second half of 2012, mainly due to a stronger USD.
As per Chris Williamson, Chief Economist at Markit, “The slowdown is largely linked to a third consecutive monthly fall in exports, in turn attributed by many companies to the strong dollar undermining international competitiveness.”
The report also shows the manufacturing sector witnessed the fastest increase in payroll numbers since September 2014. Average cost burdens rose for the second month running in June, leading to a modest increase in factory gate charges.