Friday May 24, 2019
Manufacturing activity is collapsing, and “worse may be to come,” said Chris Williamson, IHS Markit’s Chief Business Economist.
Williamson’s grim statement came on Thursday, in response to the latest IHS Markit Flash U.S. PMI report, which showed business activity growth plunged to a three-year low in May.
“Growth of business activity slowed sharply in May, as trade war worries and increased uncertainty dealt a further blow to order book growth and business confidence,” Williamson said.
Specifically, the composite output index dropped to a 36-month low of 50.9 from 53.0 in April. Any reading above 50 signals growth, which means the index is very close to signaling an outright contraction in activity.
Amid the ugly data, “inflows of new business showed the smallest rise seen this side of the global financial crisis,” he added.
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