Details from the February 2017 US Markit manufacturing PMI flash report 21 February 2017
Prior 55.0
Output 55.7 vs 56. prior
New orders 56.2 vs 57.4 prior
Input costs at the highest since Sep 2014
Output costs fall to a 3 month low
"The drop in the flash PMI numbers for February
suggest that the post-election upturn has lost some
momentum. Growth of business output, new orders
and hiring all waned, as did inflationary pressures.
"February also saw a sharp pull-back in business
optimism about the outlook over the next 12
months, which suggests companies have become
more cautious about spending, investing and hiring.
"However, even with the February dip, the PMI
remains at a level broadly consistent with the
economy growing at a 2.5% annualized rate in the
first quarter. The survey's employment index is
meanwhile indicating that a respectable 165,000
jobs were added to the economy in February."
Says Markit's Chris Williamson
As Markit also note, the variation between input and output costs is a gauge on profit margins. It's one of the key components to look at now we're in an inflation/rate hike environment. If margins are still maintained as prices rise, then the Fed would feel more confident in hiking. If margins are being squeezed then that could help keep the lid on hikes.
US manufacturing PMI
