Markit's purchasing managers index for manufacturing fell to 52.5 in March, the lowest level since June 2017. New orders and output indicators fell.
Analysts surveyed by Reuters had expected the index to rise to 53.6 from 53.0 in February. Data above 50 indicates the expansion of manufacturing industry.
The slowdown in U.S. manufacturing is part of a global trend, and international trade tensions seem to be affecting factory output. The PMI report released by Markit also shows that factory activity in the euro zone and Japan has shrunk.
These reports prompted the first inversion of the yield spreads between three-month Treasury bills and 10-year Treasury bonds since 2007. It is generally believed that the inversion of the yield curve is a precursor of economic recession. U.S. stock markets also fell today.
In recent months, the Federal Reserve (FED/Federal Reserve) hinted that it would suspend and possibly end the interest rate hike cycle that began in 2015, in which signs of a global economic slowdown played an important role.
Hot Model No.: