US Factory Growth at 7-Month Low: Markit

The IHS Markit US Manufacturing PMI fell to 54.6 in June of 2018 from 56.4 in May, well below market expectations of 56.5. The reading pointed to the slowest expansion in factory activity in 7 months, following the strong growth rates seen in recent months, preliminary estimates showed. New work rose the least since September last year, partly reflecting a slight drop in export sales.

Longer suppliers’ delivery times persisted in June, with the latest deterioration in vendor performance the greatest recorded since the survey began more than 11 years ago.

Manufacturers noted that a shortage of transport capacity following tighter trucking regulations had led to supply bottlenecks. Some firms also noted that efforts to build up safety stocks had been held back by shortages of stock among vendors.

Meanwhile, strong demand for raw materials and stretched supply chain capacity continued to push up average input prices in June. Survey respondents widely commented on rising steel costs and increased prices for related items.

The overall rate of input price inflation eased further from its recent peak, but remained among the strongest seen since 2012. At the same time, factory gate charges increased at a robust pace that was little-changed from April’s near seven-year high.

US Factory Growth at 7-Month Low: Markit

Markit | Joana Taborda |
6/22/2018 1:53:21 PM