US Markit flash manufacturing PMI edges higher in July

The US Markit manufacturing PMI rose modestly to 53.8 in the July flash estimate, against consensus expectations for an unchanged reading of 53.6. The details of the survey show modest increases in output (55.4, previous- 53.9) and new orders (55.0, previous- 54.7), the first simultaneous increase for both series since March. Elsewhere, however, the employment index fell to a three-month low of 53.7 (previous- 55.5). The weaker reading on manufacturing employment brings the Markit series closer to other regional surveys and the ISM, which have slid lower in recent months as the employment situation for the sector has deteriorated. Export orders rose to 51.3 in July (previous: 49.7), and price pressures eased for both inputs and outputs. On net, the July flash estimate from the Markit survey confirms that the US manufacturing sector is likely to see only a sluggish pace of growth in Q3, says Barclays.