US manufacturing PMI printed a preliminary 52.7 for January, boucing from the 38-month lows of December and above expectations as output and new business improved (somewhat aberrantly given every other indication). This is still the 2nd lowest print for US manufacturing since October 2013. It's not all great news though as job creation dropped to 4-month lows "softer overall employment growth reflected a wait-and-see approach to staff recruitment at the start of the year and, in some cases, the need to focus on efforts to reduce costs."
Bounce? We will wait for the final print...
Commenting on the flash PMI data, Chris Williamson, chief economist at Markit said:
“The US manufacturing sector found a new lease of life at the start of the year, with growth of factory output and orders both picking up after the slowdown seen late last year.
“Producers appear to have shrugged off worries about China, helped by export orders showing signs of reviving. It looks like weak demand from China is being offset by improved demand for USproduced goods in other markets.
“It’s clearly too early to declare that recent slowdown fears are overplayed, but the sector’s resilience in the face of recent financial market volatility is an encouraging omen for growth and employment in the wider economy, especially as sectors such as transport and business services typically move in the same cycle as manufacturing.”
One wonders just how much of this 'bounce' was due to war-effort manufacturing?