PMI round up so far heading into the U.S. session
(Kitco News) - In general, the global PMI's have been good leading into the U.S. session. The supply chain is still a massive issue across the board, transportation (freight) prices and demand is still another factor that keeps getting mentioned.
Looking at the respective jurisdictions, the EU Markit report noted that flash PMI hits 21 year high as the economy reopened. The strongest rise in service sector activity for 15 years was tempered, however, by a slowing in manufacturing output growth, linked in many cases to worsening supply lines. A huge positive was the fact that new order growth measured across both manufacturing and services accelerated to the fastest since May 2000.
In the U.K., although all the numbers were in expansionary territory they missed expectations. The report said new order growth measured across both manufacturing and services accelerated to the fastest since May 2000. This problem is consistent the world over but many of the world's central banks and governments still insinuate that inflationary pressures are transitory. Time will tell if they are correct.
The German report noted, Manufacturing order books, by contrast, showed a further acceleration at the start of the third quarter, growing at the quickest rate since April. With services new business also increasing at a quicker pace in July (the second-fastest in the series history behind that seen in January 2011), the rate of growth in overall inflows of new work reached an all-time high.
Phil Smith, Associate Director at IHS Markit said “Germany’s private sector economy remains in the fast lane to recovery, according to July’s flash PMI survey. Buoyed by a resurgent service sector, the survey’s headline index is now at a record high and signals that the recovery still possesses strong momentum at the start of the third quarter."
In the afternoon it's over to the U.S. against expectations the results have been hit and miss so far but the general picture remains healthy a good U.S. number could be positive for the risk markets and we will need to watch the reaction in gold.
U.K. Manufacturing PMI 60.4 vs exp 62.7 prev 63.9
U.K. Services PMI 57.8 vs exp 62.0 prev 62.4
EU Manufacturing PMI (Jul) 62.6 vs exp 62.5 prev 63.4
EU Services PMI (Jul) 60.4 vs exp 59.5 prev 58.3
German Manufacturing PMI (Jul) 65.6 vs exp 64.2 prev 65.1
German Services PMI (Jul) 62.2 vs exp 59.1 prev 57.5
French Manufacturing PMI (Jul) 58.1 vs exp 58.4 prev 59.0
French Services PMI (Jul) 57.0 vs exp 58.7 prev 57.8
Australian Manufacturing PMI 56.8 vs prev 58.6
Australian Services PMI 44.2 vs prev 56.8
Still to come
U.S. Manufacturing PMI (Jul) exp 62.0 prev 62.1
U.S. Services PMI (Jul) exp 64.8 prev 64.6