Global manufacturing activity shrinks

The global manufacturing PMI fell below 50 last month.

The eurozone PMI fell below 50 for the first time in three years, falling to 49.2 in June from 50.6 in May.

UK manufacturing did worse, its PMI falling to 45.8 in June from a downwardly revised 49.5 in May. This report came as the Nationwide building society reported that UK house prices fell 0.9 percent last month, the eighth straight month of declines.

Even China shows signs of slowing, with the China Federation of Logistics and Purchasing PMI falling to 52.0 in June from 53.3 in May and the CLSA PMI falling to 53.3 from 54.7, a trend supported by data from the National Bureau of Statistics.

Somewhat ironically, it was the US that showed an improvement in its manufacturing PMI, which rose to 50.2 in June from 49.6 in May. This came at a price, though; the prices sub-index rose to 91.5 from 87. And construction spending fell again in May, albeit by a less-than-expected 0.4 percent.