Thursday, 2 July 2009

Manufacturing PMIs rise

Wednesday's reports showed that the manufacturing sector continued its gradual path to recovery in June.

Reuters reports the PMIs from China.

China's manufacturing sector extended a steady if unspectacular recovery in June, surveys released on Wednesday showed, adding to evidence across Asia that the regional economy is finally pulling out of a deep dive...

The official purchasing managers' index (PMI) for June rose to 53.2 from 53.1 in May, consolidating for the fourth month in a row above the watershed mark of 50.

A companion index compiled for brokerage CLSA improved to 51.8 from 51.2, its third month in positive territory, as output grew at the strongest rate in a year and overseas orders rose for the first time in 11 months.

Manufacturing in Europe remains weak but is nevertheless improving as well. From Bloomberg:

Europe’s manufacturing industry contracted at the slowest pace in nine months in June, indicating the economy is stabilizing after a record contraction in the first quarter.

A gauge of manufacturing activity in the 16-nation euro region rose to 42.6, the highest since September, from 40.7 in May, Markit Economics said today. That compares with the initial estimate of 42.4 published on June 23...

Reuters reports similar improvement in the UK.

Britain's main manufacturing survey, the CIPS/Markit manufacturing purchasing managers' index, rose to 47.0 last month from 45.4 in May -- the highest since May 2008 and just ahead of analysts' forecasts for smaller improvement to 46.5.

There were other improvement in the UK.

The Office for National Statistics said output in the services sector, which accounts for more than three-quarters of the whole economy, fell 0.1 percent in April -- the smallest decline since last October.

And US economic data on Wednesday painted a similar picture. From Bloomberg:

The Institute for Supply Management’s factory index rose in June for a sixth straight month, to 44.8; readings less than 50 signal contraction. The National Association of Realtors said the number of Americans signing contracts for existing homes increased 0.1 percent in May after a 7.1 percent gain...

... [A] survey issued today by ADP Employer Services that showed U.S. companies eliminated 473,000 jobs in June after a 485,000 drop the previous month...

Spending on construction projects dropped 0.9 percent in May after increasing in April for the first time in seven months, a report from the Commerce Department also showed.

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