A wave of weaker than expected PMI manufacturing; Dollar up
InvestingOnline.com
1/08/2018, 16:14Most of PMI manufacturing indexes in the major economies have come below expectations, but all remain in the expansion territory. Dollar up.
Big day of data in the economic world and the Forex market, Markit manufacturing indexes in the United Kingdom, the United States, and Germany come below expectations; while the eurozone reported it in line with market anticipation.
German manufacturing PMI declined to 56.9 in July, below the 57.3 expected by market and June’s figure. According to the official press release, “PMI rises amid faster output and new order growth.
Markit highlights that “July PMI signals sharp improvement in operating
conditions. Output growth accelerates to three-month high. Input price inflation weakest since April, but marked overall.”
Eurozone manufacturing PMI reported a 55.1 figure in July, as expected and the same of June. Markit states that “eurozone manufacturing growth remains subdued at start of quarter three.”
The press release highlights that “Growth of both output and new orders remain
subdued compared to earlier in the year; and new export order growth at near-two year low amid concerns about tariffs and trade wars.”
The manufacturing PMI in the United Kingdom declined to 54.0 in July, below the 54.2 expected by market and below the revised 54.3 data posted in June. “UK manufacturing sector starts third quarter on softer footing,” Markit reported.
“The press release reported that “UK Manufacturing PMI at three-month low of54.0 in July. Weaker increases in both output and new orders. Intermediate goods production falls for first time in two years.”
Canadian manufacturing PMI dropped to 56.9 in July, against the rise to 57.5 expected by market from the 57.1 posted in June. “Strong manufacturing growth maintained in July. Prices charged rise at survey-record pace,” said Markit.
The press release highlighted “Output levels increase at fastest rate since
March 2017. Sharpest rise in factory gate prices since the survey began in October 2010. Survey-record lengthening of delivery times from suppliers.”
PMI manufacturing in the United States was down to 55.3 in July, below the 55.5 expected by market and reported in June. “PMI dips to five-month low in July.”
Markit highlighted that “Manufacturing growth remains strong, despite easing slightly. Output expands at softest pace for eight months. Inflationary pressures intensify.”
DXY daily chart Aug 1
