(Kitco News) - Manufacturing PMIs have been mixed in Europe so far this morning with the U.K. beating expectations but the European figure narrowly missing both the analyst forecast and previous readings. The report noted that although there was another contraction in the sector the inflationary pressures eased slightly. It was noted that input cost and output charge inflation slowed to 19- and 16-month lows.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said “The euro area’s beleaguered manufacturers reported a further steep drop in production in August, meaning output has now fallen for three successive months to add to the likelihood of GDP falling in the third quarter. Forward-looking indicators suggest that the downturn is likely to intensify – potentially markedly – in coming months, meaning recession risks have risen"
The U.K. report was also full of doom and gloom as it was noted that demand from both domestic and overseas markets fell. Output new business and export orders have fallen sharply and this led to a static job market in the sector. In regards to the U.K. Rob Dobson, Director at S&P Global Market Intelligence, said “August saw the UK manufacturing sector suffer its steepest downturn since the first COVID-19 lockdown. Output and new orders contracted at the fastest rates since May 2020, as inflows of work from both domestic and export markets slumped sharply lower. There were reports of clients postponing, rescheduling or cancelling agreements due to increased economic uncertainties, recession warnings, rising prices and component shortages, while port congestion and Brexit complications constrained export opportunities"
Later in the session, the markets will get the latest reading from the U.S. the ISM number is expected to print in expansionary territory at 52 and just slightly lower than the previous of 52.8 seen last month. The non-ISM figure is expected to print the same as last month at 51.3.
Australian Manufacturing PMI 53.8 vs exp 54.5 prev 55.7
Japanese Manufacturing PMI (Aug) 51.5 vs exp 51.0 prev 51.0
Chinese Caixin Manufacturing PMI (Aug) 49.5 vs exp 50.2 prev 50.4
Indian Nikkei S&P Global Manufacturing PMI (Aug) 56.2 vs exp 55.0 prev 56.4
German Manufacturing PMI (Aug) 49.1 vs exp 49.8 prev 49.3
EZ Manufacturing PMI (Aug) 49.6 vs exp 49.7 prev 49.7
U.K. Manufacturing PMI (Aug) 47.3 vs exp 46.0 prev 46.0
