US Advanced Manufacturing Data Show a Slowdown in February

Momentum in both the U.S. manufacturing and service sectors slowed in February, according to data released Tuesday.

The Markit flash U.S. manufacturing purchasing managers index fell to a seasonally adjusted reading of 54.3 from 55 in January.

A similar gauge for services slipped to 53.9 from a 14-month high of 55.6 in the prior month.

Both indices slipped to two-month lows.

Any reading below 50 indicates more respondents said conditions are getting worse than getting better.

“The drop in the flash PMI numbers for February suggest that the post-election upturn has lost some momentum,” said Chris Williamson, chief business economist at IHS Markit.

Williamson said that there was a sharp pull-back in business optimism in the outlook over the next 12 months, which suggests companies have become more cautious.

Still, the readings are broadly in level with the economy growing at a 2.5% annualized rate in the first quarter.

via MarketWatch

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