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(Kitco News) - Flash manufacturing PMI's have very good across the world this morning and overnight as all the readings so far have remained in expansionary territory. In particular, the German number for the month of June hit 64.9 vs expectations of 63.0. The future easing of lockdown restrictions has helped the nation as pent-up demand fed through to the data. The Markit PMI report said, "However, the recovery in output levels was accompanied by a further increase in price pressures, with rates of inflation in both input costs and output prices accelerating to new record highs.".
Phil Smith, Associate Director at IHS Markit said “As anticipated, the further loosening of COVID-19 restrictions has given an additional boost to the recovery of the German economy, with the ‘flash’ PMI rising steeply to its highest for over a decade. And with containment measures set to be lifted further in July, this strong momentum is on course to carry over to the third quarter.".
When looking at the European number as a whole Eurozone business activity grew at the fastest rate for 15 years. Business confidence in the outlook meanwhile rose to the highest since future sentiment data were first available in 2012, buoyed by the recent surge in demand and prospects of the economy opening up further in the coming months.
In the UK. the flash estimate was expected to come in at 64.0 and the previous figure hit 65.6. Today's figure has come off the back of some great growth. In May the reading printed at 66.1 the highest recorded and as the rest of the European continent moved out of lockdown the U.K. economy has been open for a while now and looking at sustainable growth. Once again it was noted in the report that producer prices are increasing and there is an issue in transportation rates and costs. Countries like India have contributed to this problem as they are still struggling to cope with the covid-19 pandemic.
Australian Manufacturing PMI 58.4 vs Prev 60.4
Japanese Manufacturing PMI (Jun) 51.5 Prev 53.0
French Manufacturing PMI (Jun) 58.6 vs Exp 59.0 Prev 59.4
German Manufacturing PMI (Jun) 64.9 vs Exp 63.0 Prev 64.4
Eurozone Manufacturing PMI (Jun) 63.1 Exp 62.1 Prev 63.1
U.K. Manufacturing PMI 64.2 vs Exp 64.0 Prev 65.6
The U.S. numbers are due later and the analyst expectation is 61.5 with a previous reading of 62.1.