Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the U.S. on Tuesday. The U.S. preliminary manufacturing purchasing managers' index (PMI) fell to 53.7 in December from 55.8 in November, missing expectations for a rise to 56.1. That was the lowest level since January 2014.

A reading above 50 indicates expansion in economic activity.

The decline was driven by a softer manufacturing output and new orders. The output subindex decreased to 54.7 in December from 55.6 in November. That was the lowest level since January 2014.

The employment subindex dropped to 52.8 in December from 55.1 in November. That was the lowest level since July 2014.

The Markit Chief Economist Chris Williamson said that the pace of expansion is slowing.