Manufacturing round-up leading into the U.S. open
(Kitco News) - Manufacturing PMI's have been mixed so far this morning. One of the main nations that the market watches for is China and the Caixin number printed at 50.3 only just in expansionary territory. However, it is lower than the previous reading of 51.3 which could be seen as disappointing so some investors. Higher costs have been cited as an issue, look out for PPI prices & what that means for manufacturers. This could make a big difference in the future.
On the other hand, the better number came from a nation that is seriously struggling with the COVID-19 pandemic. India has been heavily impacted and manufacturing and shipping slowed down causing a bottleneck effect in many industries. This time around the nation's PMI printed at 55.3 higher than the previous 48.1 in contraction. Job creation has also improved which could be a great sign.
In Europe things have been more positive, Geman manufacturing PMI hit 65.9 vs analyst expectations of 65.6. Trevor Balchin, Economics Director at IHS Markit, noted "Faster growth of new orders and employment boosted the German manufacturing sector in July, with the PMI rising for the second successive month following a brief loss of momentum in May. "Although the headline figure now stands at the third-highest level on record, at 65.9, the latest survey results provided further evidence that output growth is being constrained by supply shortages.
In the U.K., the manufacturing upturn remained solid in July. Although rates of expansion in output and new orders slowed, they remained among the best in the survey history amid robust sales to both domestic and export clients. The report noted, scarcities, shortages and price rises remained prominent challenges faced by UK manufacturers during July. Raw material, staff, and skill shortages were all major factors stymieing output growth and contributing to a further marked increase in input purchasing. Solid jobs growth continued, but the rate was insufficient to prevent a further increase in backlogs.
Commenting on the latest survey results, Rob Dobson, Director at IHS Markit, said “Although July saw UK manufacturers report a further month of solid growth, scarcities of inputs, transport, and labor are stifling many businesses.
Later in the session, we will get the ISM manufacturing number from the U.S. and it is expected to print at 60.9 with a previous reading of 60.6.Australia Manufacturing PMI 56.9 vs Prev 58.6.
Japanese Manufacturing PMI (Jul) 53.0 vs Prev 52.2
Chinese Caixin Manufacturing PMI (Jul) 50.3 vs Exp 51.0 Prev 51.3
Indian Nikkei Markit Manufacturing PMI (Jul) 55.3 vs Exp 50.5 Prev 48.1
German Manufacturing PMI (Jul) 65.9 vs Exp 65.6 Prev 65.1
European Manufacturing PMI (Jul) 62.8 vs Exp 62.6 Prev 63.4
U.K. Manufacturing PMI (Jul) 60.4 vs Exp 60.4 Prev 63.9
(Later) U.S. Manufacturing PMI (Jul) 63.1 Prev 62.1 & ISM Manufacturing PMI (Jul) 60.9 Prev 60.6