Worse growth rate in six months
The US manufacturing sector has only grown in increments over the past month. In fact it is the slowest pace in month according to a report developed by Markit an online search firm. The margin was offset mostly by export productions. The purchasing managers index fell from 52 to 54.6 which marks the line between growth and contractions.
Other outlooks have shown an extremely dismal display. Markit’s flash PMI survey is based on replies from US firms and it also found that employment did increase over the April month. Chris Williamson was the chief economist at Markit, he stated that he findings show that there was an output growth that was trending in the second quarter.
Figures will also show that on Friday there will be a growth of at least 3% for the US economy. At the same time in Germany, a manufacturing PMO survey for China showed an increasingly slow growth as well and a drop in export orders. Export orders were blamed for the decline. A sign of weak demand globally, China is not the only area under pressure from the rapid low manufacturing rate. It has also created a problem for nations across the globe. Also the eurozone area that includes the services and manufacturing sectors also were under and intense German output failing for the very first time in 2013. The last time there was such a sharp decline occurred in November 2012.
Markit PMI also found that the eurozone remained at 46.5 in April, no change at all since the month before. According to Williamson, “While this week’s first quarter GDP numbers may….bring some brighter news on the economy, the picture looks to have already begun to darken again, with GDP growth set to weaken in the second quarter.”