US Markit flash manufacturing PMI slips to three-year low in December

The Markit US manufacturing PMI slipped to 51.3 in the flash December reading (previous: 52.8), below consensus expectations (52.6). it is the weakest reading since October 2012. Output declined to 52.7 (previous: 54.8) and new orders remained above neutral at 50.5 (previous: 53.1).

Employment, on the other hand, rose to 53.0 from 52.7 last month. New export orders ticked up to 50.5 (previous: 49.4) and is in line with the prior three-month trend. Apart from input prices, stocks of purchases and work backlogs, all of the survey components printed above the 50 mark in December.

"The relatively short history of the Markit series, we expect greater weight on the ISM manufacturing index while assessing national manufacturing trends. The recent decline in the Markit PMI mirrors the slump that the ISM index registered a few months earlier. On balance, this morning's release does little to alter our outlook for the manufacturing sector", says Barclays.