US factory sector grows at slowest pace since Oct 2013 in Aug - Markit

The US manufacturing sector is at its weakest pace in almost two years.
The US manufacturing sector is at its weakest pace in almost two years.PHOTO: REUTERS

NEW YORK (REUTERS) - Growth in the US manufacturing sector slowed to its weakest pace in almost two years in August, according to an industry report released on Tuesday.

Financial data firm Markit said its final US Manufacturing Purchasing Managers' Index fell to 53.0 in August, down from 53.8 in July and marking the lowest level since October 2013. The August level was up slightly from a preliminary reading of 52.9.

A reading above 50 indicates expansion in the sector.

The index's employment component slipped to 52.4 in August from 53.8 in July, marking its lowest level since July 2014. Output also fell, to 53.8 from 55.3 in July, to mark its lowest reading since January 2014.

"August's survey highlights that the US manufacturing sector continues to struggle under the weight of the strong dollar and heightened global economic uncertainty, but resilient domestic spending and subdued cost pressures are keeping the recovery on track," said Tim Moore, senior economist at Markit.

"Reflecting this, new orders from abroad have now fallen in four of the past five months, which represents the weakest phase of manufacturing export performance since late-2012."

The manufacturing sector Purchasing Managers' Index is compiled by information services company Markit.