US Manufacturing Slows Down Hit by Shutdown

U.S. manufacturing grew at its slowest pace in a year this month and factory output contracted for the first time since late 2009, an industry report showed on Thursday.

Financial data firm Markit said its “flash,” or preliminary, U.S. Manufacturing Purchasing Managers Index fell to 51.1, the lowest since October 2012, from 52.8 in September.

Output declined for the first time in more than four years, with the subindex dipping to 49.5 from 55.3. A reading below 50 indicates contraction.

The survey was conducted partly during a 16-day U.S. government shutdown that economists expect will slow overall U.S. growth slightly in the last three months of 2013.

“It is impossible to disentangle the impact of the shutdown from other factors that might have been at play during the month,” said Markit chief economist Chris Williamson.

But he said the survey “suggests that the disruptions and uncertainty caused by the crisis hit companies hard.”

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza