IHS Markit U.S. Composite Output Index Flash Reading Falls to Lowest in 76 Months
February 21 2020 - 11:10AM
Dow Jones News
By Allison Prang
IHS Markit's flash reading for an economic indicator measuring
both manufacturing and services business activity fell to its
lowest level in more than six years.
The flash reading for the U.S. Composite Output Index was 49.6
in February, a drop from 53.3 last month, IHS Markit said. That
measurement, which is the lowest it has been in 76 months, is based
on data from the firm's PMI surveys for manufacturing and services,
according to IHS Markit.
"With the exception of the government-shutdown of 2013, U.S.
business activity contracted for the first time since the global
financial crisis in February," IHS Markit Chief Business Economist
Chris Williamson said in prepared remarks. "Weakness was primarily
seen in the service sector, where the first drop in activity for
four years was reported, but manufacturing production also ground
almost to a halt due to a near-stalling of orders."
IHS Markit's flash U.S. Services Business Activity Index was
49.4, also the lowest it has been in 76 months, IHS Markit said. It
fell from 53.4 a month ago. Economists polled by The Wall Street
Journal expected 53.2.
IHS Markit's two flash indexes measuring manufacturing also hit
recent lows. The flash U.S. Manufacturing Output Index was 50.6,
the lowest it has been in seven months, and a drop from 52.4 last
month, IHS Markit said. It said its flash U.S. Manufacturing PMI
was 50.8, the lowest it has been in six months. It slipped from
51.9 last month. Economists expected the U.S. Manufacturing PMI
flash reading to be 51.5.
IHS Markit said the new orders private sector businesses
received declined the first time since October 2009, when data
started being collected.
Business confidence, however, was the highest it has been in
eight months, IHS Markit said. It still called that confidence
"historically subdued as firms highlighted ongoing global
uncertainty and the outbreak of coronavirus."
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
February 21, 2020 10:55 ET (15:55 GMT)
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