Mixed manufacturing PMI's leading into the U.S. session
(Kitco News) -
Global manufacturing PMI's have been mixed today leading into the U.S. market open. In Asia, both Australian and Japanese readings came in below the previous figures. Although the COVID-19 pandemic has calmed down in comparison to previous outbreaks there are still closures and restrictions in some areas of Asia that could lead to a slowdown in manufacturing. Across the board supply bottlenecks and employment are both issues. In addition to this, staff shortages have been a common theme in the major nations.
In Europe, the figures are slightly better as Germany and Europe improved on last months numbers but in U.K. there was a slight slowdown. In the Eurozone, the report noted that manufacturing growth meanwhile accelerated to the fastest since last August. Although staffing issues curbed output in some factories, supply constraints eased, helping boost production in many firms. Average supplier delivery delays lengthened to the least extent since January of last year, with fewer items reported in short supply and shipping delays showing signs of easing. Growth was recorded in all major manufacturing sectors, including a second consecutive month of rising production in the auto sector.
The good news didn't stop there as in the German report Phil Smith, Economics Associate Director, at IHS Markit said “Manufacturing is expected to stage a recovery in 2022 as supply bottlenecks ease, but seeing growth of this speed already is a welcome development. The drag on production from supply-chain issues looks to have eased further, although there is still a lot of room for improvement on this front"
Later in the session, the market will get the later figures from the U.S. with manufacturing PMI for January expected to come in at 56.7 slightly lower than the 57.7 last month.
Australian Manufacturing PMI 55.3 vs prev 57.7
Japan Manufacturing PMI (Jan) 54.6 vs exp 55.0 prev 54.3
French Manufacturing PMI (Jan) 55.5 vs exp 55.5 prev 55.6
German Manufacturing PMI (Jan) 60.5 vs exp 57.0 prev 57.4
EU Manufacturing PMI (Jan) 59.0 vs exp 57.5 prev 58.0
U.K. Manufacturing PMI 56.9 vs exp 57.7 prev 57.9