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US Factory Slowed in September

U.S. manufacturing activity growth slowed in September as demand for products declined and firms took on fewer workers, an industry report showed on Monday.

Financial data firm Markit said its “flash,” or preliminary, U.S. Manufacturing Purchasing Managers Index retreated to 52.8 this month from 53.1 in August. A reading above 50 indicates expansion.

Output growth accelerated to a six-month high of 55.3 from 52.5, but new order inflows from domestic and overseas customers slowed, suggesting “production growth is likely to weaken in the fourth quarter unless demand picks up again in October,” said Chris Williamson, Markit’s chief economist.

Firms took a cautious approach to hiring this month. The employment sub-index fell to 51.4, marking the slowest rate of job creation in three months. It stood at 53.1 in August.

The survey suggests growth momentum in the sector may be flagging and “vindicate(s) the Federal Reserve’s decision to hold off on tapering its asset purchases,” Williamson said.

via Reuters [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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
Alfonso Esparza

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