Tuesday 24 June 2014

US economic growth above trend, global manufacturing expands

US economic data on Monday were positive.

The Chicago Federal Reserve reported that its national activity index rose to +0.21 last month from -0.15 in April. The index's three-month average fell to +0.18 from +0.31 but still suggested that US economic growth was above its historical trend.

The US housing market is also regaining momentum. Another report on Monday showed that existing home sales rose 4.9 percent in May.

In another positive sign for the US economy, Markit's preliminary US manufacturing PMI for June hit 57.5, the highest since May 2010.

Elsewhere, Markit's preliminary June manufacturing PMIs for China and Japan also showed improvements, coming in 50.8 and 51.1 respectively and marking the return to expansion for the sector for these two Asian economies.

However, the preliminary June reading of Markit's composite index for the euro area showed a fall to 52.8 from 53.5 in May.

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