The Manufacturing World Suddenly Goes Into Reverse: Global August PMI Summary

Tyler Durden's picture

While yesterday everyone was focusing on the ongoing escalation in Ukraine, or BBQing, the real story was the sudden and quite dramatic collapse, or as we called it, "bloodbath" in global manufacturing as tracked by various PMI indices.

Here, via Bank of America, is the bottom line: as the below table shows, out of the 26 countries that have reported so far, 9 reported improvements in their manufacturing sectors in August, while 15 recorded a weakening, and 2 remained unchanged. A reading above 50 reflects expansion, while below 50 indicates contraction. In this regard, there were 5 countries in negative territory and 21 in positive. In particular, Brazil, Greece, Korea and Turkey moved from contraction to expansion, while Australia and Italy did the reverse. The biggest concern: virtually every core and pierphral Eurozone country of note (from France and Germany to Spain and Italy) saw substantial contraciton. Which, as is well-known in the New Normal, is the stuff new all time S&P500 highs are made of.

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q99x2's picture

Yeeeeehaaaaa, looks like another year of not working.

GetZeeGold's picture



Not a lot of disposable income for people working 29.5 hr/wk jobs.


Even less for those that got suckered into buying over priced government healthcare.

CH1's picture

Bad news is good news!!!

Black IS white these days.

LoneStarHog's picture

"Black IS white..."

Thank gawd for Obozo since he is both and can swing with the prevailing breeze.

Publicus's picture

Russian sanction boomerang!

CH1's picture

those that got suckered into buying over priced government healthcare.

I think you mean "those who were forced to buy over priced government healthcare."

If it's "required by law," violence stands behind it.

BandGap's picture

I feel for you.  Was out 16 of 19 months prior to June of this year.

It is mind numbing. Keep your head about you and keep faith.

Freddie's picture

More sanctions against Russia are needed.  That will help Europe.  Idiots.   They want to be as stupid and retarded as the Kenyan Democrat.

Debeachesand Jerseyshores's picture

Go Ireland,fuck those pricks in Brussels..........

IronShield's picture

Bullish!  Worth 50 points on the S&P, at least.

sodbuster's picture

The first liar doesn't stand a chance. Has this data been "massaged" properly???

Keltner Channel Surf's picture

Perhaps the 'inflationary universe" theory is wrong, and now everything is reversing to eventually collapse on itself (?) 

Damn, mess up one decimal point in an equation, and everything goes to hell in a commodity basket . . .

WhyDoesItHurtWhen iPee's picture

"Dam it Jim, I'm not a Kenyisian Witch Doctor !

Keltner Channel Surf's picture

Kirk, smiling:  "I know, Bones, but somehow you never let us down"

(turns to Bridge):  "Sulu, move the Russell 2K ahead, warp factor 7!"

CheapBastard's picture
More than one in three wild boar in Germany are too radioactive to eat


Gosh, some news is simply too "Boaring...."

the not so mighty maximiza's picture

this is so bullish i have to touch myself all over

Debugas's picture

most interesting fact - there are only 26 countries left which still have some manufacturing base


Dead Man Walking's picture

Of course they are all slowing down, they don't have a Nobel Prize winning Prez like ours.

KidHorn's picture

Find a way to categorize Ebola as manufacturing and everything is solved.

rpboxster's picture

It's called grilling.  BBQ is food.

StupidEarthlings's picture

Bbq is a "type" or "style" or flavor of food.

You could eat a burger.

You dont eat a bbq.


Tho you could eat a bbq burger.


(But was cooked on the grill.)

Seer's picture

Well, iron eating bacteria CAN eat barbecues (made from, of course, iron) :-)

MisterMousePotato's picture

For the benefit of those who have struggled with the meaning of the word "Sophistry," I present Exhibit A. (Said, of course, with a smile and a happy up twinkle.)

esum's picture

like a mile long train wiht the wheels locked but still moving forward schreeching to a sudden halt ...... time for war.... 

Seer's picture

Kudos to all those who decided to drop in on this article.  It's subjects like this that are the real driving forces, the forces that carry the currents.

As I've been saying: Growth is dead.

esum (above) described it quite succinctly!

angel_of_joy's picture

US must have no manufacturing left whatsoever since it's nowhere on that list...

Seer's picture

But does it really matter when there are no real customers (able to pay)?

All that you see happening can be explained quite readily: "Economies of scale in reverse."