US manufacturing flash PMI hits lowest level since October 2013 in August

The US manufacturing sector continued to expand in August, but the rate of growth fell to its lowest since October 2013.

The Markit flash Purchasing Managers’ Index declined from 53.8 in July to 52.9 in August, compared with expectations for an unchanged reading.

The index, however, was comfortably above the 50 threshold that indicates expansion.

Markit said a number of companies expressed concerns over their outlook because of the negative effect the stronger dollar is having on exports and, as a result, firms have adopted a more cautious stance when it comes to hire new staff.

“August’s survey highlights a lack of growth momentum and continued weak price pressures across the U.S. manufacturing sector, which adds some fuel to the dovish argument as policymakers weigh up tightening policy in September,” said Markit’s senior economist Tim Moore.

“With the headline PMI swiftly losing ground after a modest rebound during July, the latest figure now points to the weakest overall pace of manufacturing growth for almost two years.”