Tuesday 3 June 2014

Manufacturing accelerates in US, slows in Europe

US economic data on Monday pointed to a pick-up in growth in the second-quarter.

The Institute for Supply Management's manufacturing PMI rose to 55.4 in May from 54.9 in April. Markit's US manufacturing PMI rose to 56.4 last month from 55.4 in April.

Construction spending rose 0.2 percent in April to the highest level since March 2009.

In contrast, European economic data on Monday pointed to slowing growth.

In the euro area, Markit's manufacturing PMI fell to 52.2 in May from 53.4 in April.

In the UK, the Markit/CIPS manufacturing PMI fell to 57.0 in May from 57.3 in April while mortgage approvals fell to 62,918 in April, 17 percent below a six-year high in January and the fewest since last July.

In China, Markit reported on Tuesday that the HSBC manufacturing PMI rose to 49.4 in May from 48.1 in April, an improvement that still left the sector in contraction, in contrast to the improved growth indicated by the official manufacturing PMI released on Sunday.

Meanwhile, another report from China on Tuesday showed that the official non-manufacturing PMI rose to 55.5 in May from 54.8 in April.

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