Barclays Wealth warns US markets due setback after weak manufacturing data

Barclays Wealth has warned US markets are set for a correction following a sharp decline in its manufacturing industry.

The ISM report, one of the leading indicators for global growth, posted a substantial drop in economic activity in May, with the PMI (purchasing managers index level) reading the lowest for 12 months. The reading dropped to 53.5% last month, from 60.4% in April, showing a more subdued rate of job creation in the industry, and an order book coming under strain, although it is still expanding. The figures prompted the group’s research team to slash its forecast for US growth in the second quarter to 2%, down from 3.5%. Kevin Gardiner, head of global investment strategy at Barclays W...