Friday, 2 September 2011

Manufacturing grows in US, shrinks in Europe

US manufacturing continued to grow in August, albeit barely. The ISM reported on Thursday that its manufacturing index fell to 50.6 from 50.9 in July.

However, US construction spending fell 1.3 percent in July after jumping 1.6 percent in June.

While US manufacturing continued to eke out growth in August, manufacturing in much of the rest of the world may have shrunk.

In the euro area, Markit's manufacturing PMI fell to 49.0 in August from 50.4 in July.

In the UK, the Markit/CIPS manufacturing PMI fell to 49.0 in August from 49.4 in July.

Even China is seeing only mixed readings in manufacturing. HSBC's manufacturing PMI rose to 49.9 in August from 49.3 in July, remaining below 50. The China Federation of Logistics and Purchasing's PMI though rose to 50.9 last month from 50.7 in July.

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