The pace of growth in the U.S. manufacturing sector hit a one-year-low in October as factory output slowed sharply, an industry report showed on Friday.
Financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index stood at 51.8 last month. That was better than an initial estimate of 51.1 but still a point below September’s reading and the worst final showing since October, 2012.
A reading above 50 indicates expansion in the sector
A sharp slowdown in output, which at 50.6 was the lowest in 13 months, was the main drag on growth. The subindex stood at 55.3 in September. New orders from domestic customers also slowed, though overseas demand rose slightly.
Chris Williamson, chief economist at Markit, said a partial government shutdown in the first half of October likely contributed to the slowdown in output and growth.
Firms hired workers at a slightly faster rate in October, however, with the subindex rising to 52.7 from 51.3.
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