[Screen Shot 2016 05 02 at 9.48.46 AM]Markit Data on US manufacturing in April showed that the sector is still facing big challenges. The ISM manufacturing purchasing manager's index (PMI) was 50.8, dropping from 51.8 in March. This showed that the sector expanded — denoted by an index above 50 — but at a slower pace than expected. Economists had forecast a PMI of 51.4. Their optimism was based partly on the rise in crude oil prices and the drop in the US dollar — two of the biggest headwinds to manufacturing in the last few months. The data showed that the setbacks from these and other challenges linger. New orders and production grew for a fourth straight month, while employment fell for a fifth. Markit Economics' final PMI came in at 50.8, unchanged from the preliminary reading. This print indicated that overall, the manufacturing sector barely grew or contracted. But it pointed to the weakest performance since September 2009. After a brief resurgence in the last few months, new business growth slowed to the weakest pace so far seen in 2016. New-order growth increased, but at the smallest rate since December. And, unfinished business declined at a pace not seen since September 2009, sending the pace of job creation to a near-three-year low. "The April PMI data suggest there’s no end in sight to the current downturn in manufacturing activity," said Markit chief economist Chris Williamson in the release. "The survey indicates that factory output is dropping at an annualized rate of approximately 3%, and factory headcounts are being culled at a rate of around 10,000 per month." Refresh this page for updates. NOW WATCH: FORMER GREEK FINANCE MINISTER: The single largest threat to the global economy
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