The U.S. flash purchasing-managers’ index compiled by data provider Markit fell to 52.6 from a final 54.1 in October, giving back ground it recovered after tumbling in September.
Still, the index remains in growth territory; readings above 50 signal growth.
Economists surveyed by The Wall Street Journal expected the index to hold steady at 54.0.
“November’s flash PMI survey indicates that the manufacturing sector lost some growth momentum after the nice pick up seen in October,” said Chris Williamson, chief economist at Markit.
Survey respondents cited a cyclical slowdown in demand patterns and continuing weakness in export sales, Markit said. As such, the index measuring new orders from abroad fell back below the flat line this month.
In response to slower output and new business growth, manufacturers signaled greater caution with regard to purchasing activity and inventories.
Data collected 12 – 20 November 2015
Markit U.S. Manufacturing PMI (seasonally adjusted)
Source: Markit
The November rise in input buying was the weakest since January 2014, while stocks of finished goods dropped for the fourth consecutive month.
Manufacturing payrolls grew, but at a slower pace. As the sluggish global economy and strong dollar continue to hamstring firms’ order-book growth, manufacturers took a more cautious approach to hiring.
Employment showed one of the smallest monthly gains reported over the past five years, according to Markit.
The Markit flash report is composed of about 80%-85% of all responses that go into the final report.
The survey comes ahead of The Institute for Supply Management’s gauge, a carefully-watched report on national manufacturing, which is due out on Dec. 1.
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