U.S. Retains Narrow Advantage in Manufacturing over Euroland

U.S. Retains Narrow Advantage in Manufacturing over Euroland

August 1, 2016

The U.S. manufacturing purchasing managers index fell 0.6 points in July, while its eurozone counterpart dropped by 0.8 points.  Each measure remained above the 50 line of demarcation between improving and deteriorating conditions at 52.6 and 52.0, respectively. The dollar on average strengthened a bit over 1.5% month on month to its strongest euro value since January.

The U.S. PMI fell last month in spite of a 0.7-point rise in production, which connotes a faster rate of output growth.  the lower Euroland reading mainly reflected the response to the Brexit U.K. referendum in late June. Among reporting members of the eurozone, only The Netherlands experienced a faster rate of improvement in July, but only in Greece and France did conditions outright deteriorate.

The British PMI, which was most directly affected by the June 23 decision to leave the EU, fell to 48.2, a 41-month low, form 52.4 in June.

Mfg PMIs U.S. Euroland Spread EUR/USD
Jan 2013 53.1 47.9 +5.2 1.330
February 53.1 47.9 +5.2 1.334
March 51.5 46.8 +4.7 1.295
April 50.0 46.7 +3.3 1.301
May 50.0 48.3 +1.7 1.299
June 52.5 48.8 +3.7 1.319
July 54.9 50.3 +4.6 1.309
August 56.3 51.4 +4.9 1.331
September 56.0 51.1 +4.9 1.335
October 56.6 51.3 +5.3 1.364
November 57.0 51.6 +5.4 1.349
December 56.5 52.7 +3.8 1.370
Jan 2014 51.3 54.0 -2.7 1.361
February 54.3 53.2 +1.1 1.366
March 54.4 53.0 +1.4 1.380
April 55.3 53.4 +1.9 1.380
May 55.6 52.2 +3.4 1.374
June 55.7 51.8 +3.9 1.360
July 56.4 51.8 +4.6 1.354
August 58.1 50.7 +7.4 1.332
September 56.1 50.3 +5.8 1.290
October 57.9 50.6 +7.3 1.268
November 57.6 50.1 +7.5 1.247
December 55.1 50.6 +4.5 1.232
Jan 2015 53.5 51.0 +2.5 1.162
February 53.3 51.0 +2.3 1.135
March 52.3 52.2 +0.1 1.083
April 51.6 52.0 -0.4 1.081
May 53.1 52.2 +0.9 1.116
June 53.1 52.5 +0.6 1.123
July 51.9 52.4 -0.5 1.101
August

September

October

51.0

50.0

49.4

52.3

52.0

52.3

-1.3

-2.0

-2.9

1.114

1.123

1.121

November

December

Jan 2016

February

March

April

May

June

July

48.4

48.0

48.2

49.5

51.8

50.8

51.3

53.2

52.6

52.8

53.2

52.3

51.2

51.6

51.7

51.5

52.8

52.0

-4.4

-4.8

-4.1

-1.7

+0.2

-0.9

-0.2

+0.4

+0.6

1.076

1.090

1.087

1.111

1.114

1.134

1.130

1.124

1.106

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Tags: U.S. and eurozone PMIs




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