Markit Economics released its preliminary manufacturing purchasing managers' index (PMI) for the U.S. on Monday. The U.S. preliminary manufacturing purchasing managers' index (PMI) plunged to 51.0 in January from 52.4 in January, missing expectations for a decline to 52.3. It was the lowest level since October 2012.

A reading above 50 indicates expansion in economic activity.

The drop was driven by a slower pace of expansion in output, new business and employment.

"Every indicator from the flash PMI survey, from output, order books and exports to employment, inventories and prices, is flashing a warning light about the health of the manufacturing economy," Markit Chief Economist Chris Williamson.