(Reuters) – A flood of new orders gave a boost to European and Chinese firms in September although weakness in U.S. factory activity tempered evidence of a healing global economy.
Purchasing managers’ indexes, surveying thousands of companies across the globe, showed a welcome pick-up in the euro zone and China although slower growth in the United States’ manufacturing sector backed the Federal Reserve’s decision last week to maintain its support for the world’s largest economy.
Financial data firm Markit said its “flash,” or preliminary, U.S. Manufacturing Purchasing Managers Index (PMI) retreated to 52.8 this month from 53.1 in August, confounding analysts’ forecasts of an improvement. A reading above 50 indicates expansion.
Output growth accelerated but new order inflows slowed, suggesting “production growth is likely to weaken in the fourth quarter unless demand picks up again in October,” said Chris Williamson, Markit’s chief economist.
The Fed surprised markets last week by postponing a reduction of its massive, $85-billion-a-month bond-buying program, while downgrading its growth forecasts.
Conflicting views from policymakers of when the wind-down will come has left markets uneasy, while the threat of another fight on Capitol Hill over how much the United States can borrow loomed large.
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