By Greg Robb
WASHINGTON (MarketWatch) -- The U.S. flash manufacturing purchasing managers index fell to a 52.0 reading in April from 54.6 in March, Markit said Tuesday. This is the lowest reading in six months. New orders slowed sharply in April, employment also expanded at a slower rate. While the index is still above 50, the level that indicates an expansion in activity, Chris Williamson, chief economist at Markit, noted that the drop in the U.S. PMI was the sharpest since June 2010. The decline "raises concerns that the U.S. manufacturing expansion is losing momentum rapidly as businesses and households worry about the impact of tax hikes and government spending cuts," Williamson said. Earlier, Markit's euro-zone composite purchasing-managers' index signaled a weak start to the second quarter. April euro-zone composite PMI was unchanged at 46.5. A separate preliminary version of HSBC's manufacturing Purchasing Managers's Index for China fell to a two-month low of 50.5 in April.
