Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

US manufacturing ends 2012 at seven month high

US manufacturing ends 2012 at seven month high

US manufacturing data rose to a seven month high in December indicating a solid expansion of the sector, which many commentators are backing to power the economic recovery.

The final Markit US Manufacturing Purchasing Managers index was 54 in the last month of the year, down slightly on the 54.2 earlier flash estimate, but up from 52.8 in November and the highest since May.

Output, new orders and exports also expanded at a faster rate month-on-month although the input prices sub-index, at 61.9, remains elevated. Drilling down further into the numbers, one in five companies reported an increase in the new orders with the overall rate of growth the fastest since April, while new export orders rose for the second month running and at the strongest since March.

Employment in the manufacturing sector rose, with around 12% of firms hiring additional staff in December, the largest rise in job creation in eight months.

However, high input prices marred the picture with the rise in the price of steel in particular pointed out by many manufacturers.

Chris Williamson, chief economist at Markit, said: ‘The final Markit PMI came in slightly below the earlier flash estimate but still indicates that the US manufacturing sector enjoyed a reasonably strong end to the year. Production is growing at a solid pace, buoyed by rising domestic and export sales.

‘While economic growth may disappoint in the fourth quarter compared to the 3.1% rate of expansion seen in the third quarter, the recent run of positive PMI surveys towards the end of 2012 suggests that prospects have begun to look a little brighter for the new year.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Profile: what tempted Brewin's Glasgow team over to Rathbones?

Rathbones’ Glasgow office has only been open for three months but the team, led by Angus Kerr, has already attracted new clients

Wealth Manager on Twitter