The Markit Economics final index of U.S. manufacturing dropped to 51.1 in September from 51.5 a month earlier, the London-based group said today.
A reading of 50 is the dividing line between expansion and contraction. The final figure compares with an initial September reading of 51.5.
Markit’s purchasers figure is based on replies from about 85 percent to 90 percent of those American manufacturers who respond to the poll of the more than 600 companies surveyed.
The gauge of U.S. manufacturing debuted in May. The company surveys purchasing managers in more than 30 countries and regions, including Europe and China.
In the euro-area, manufacturing contracted for a 14th month in September, suggesting the economy may have struggled to avoid a recession in the third quarter. A gauge of the industry in the 17-nation currency region based on a survey of purchasing managers was 46.1, Markit Economics said today. The index has held for 14 months below 50, indicating contraction, and fell as low as 44 in July.
U.K. manufacturing shrank more than economists forecast and export orders declined for a sixth month. A measure based on a survey of purchasing managers fell to 48.4 from 49.6 in August, Markit Economics and the Chartered Institute of Purchasing and Supply said in London today.
In China, manufacturing contracted for an 11th straight month, increasing pressure on the government to bolster growth in the world’s second-largest economy. The purchasing managers’ index from HSBC Holdings Plc and Markit Economics was at 47.9 last month, compared with 47.6 in August. Export orders declined at the fastest pace in 42 months and purchasing activity in manufacturing fell for a fifth consecutive month, the Sept. 29 report showed.
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