(Kitco News) - Manufacturing PMIs from around the world have not really been the most impressive, to say the least. Heading into the U.S. open the market will be analyzing mixed results but risk sentiment has been broadly positive despite the news. In Europe, the report suggested that the recession risks are intensifying and it has been the sharpest decline in production since the initial wave of strict COVID-19 lockdowns in May 2020. The good news is that there has been some alleviation of some of the price pressures over the last month.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said “Eurozone manufacturing is sinking into an increasingly steep downturn, adding to the region’s recession risks. New orders are already falling at a pace which, excluding pandemic lockdown months, is the sharpest since the debt crisis in 2012, with worse likely to come."
In the U.K. the number stayed above the expansionary 50 level but manufacturing PMI fell to a 25-month low. Output contracted for the first time in over two years as intakes of new work and new export business both continued to decline. Inflation is a major worry in the nation as the reduction in total new orders was linked to the cost of living crisis, weak domestic demand, client uncertainty, warmer-than-usual weather, and lower intakes of new export business.
Rob Dobson, Director at S&P Global Market Intelligence, said “The UK manufacturing sector shifted into reverse gear at the start of the third quarter. Output contracted for the first time since May 2020, as new order intakes suffered the first back-to-back monthly decreases for two years. Rising market uncertainty, the cost of living crisis, the war in Ukraine, ongoing supply issues, and inflationary pressures are all hitting demand for goods at the same time, while lingering post-Brexit issues and the darkening global economic backdrop are hampering exports"
Later in the session, we get the latest numbers (manufacturing PMI) from the U.S. which are expected to print at 52.3 just slightly lower than the previous of 52.7
Chinese Manufacturing PMI (Jul) 49.0 vs exp 50.4 prev 50.2
Chinese Caixin Manufacturing PMI (Jul) 50.4 vs exp 51.5 prev 51.7
Australian Manufacturing PMI 56.2 prev 55.7
Japanese Manufacturing PMI (Jul) 52.1 prev 52.7
German Manufacturing PMI (Jul) 49.3 vs exp 49.2 prev 52.0
U.K. Manufacturing PMI (Jul) 52.1 vs exp 52.2 prev 52.8
