Manufacturing Rebound Sends US PMI To 6-Month High (As European PMI Hits 6-Month Low)

Tyler Durden's picture

Following Europe's PMI slump to six-month lows this morning, US Composite PMI rose to a six-month high, with Manufacturng surprising to the upside (4-mo high). The stronger PMI reading was supported by accelerated growth in output, new orders, employment and stocks of inputs during July, but the principal weak spot in the economy remained exports, with foreign goods orders dropping.

As 'hard' US economic data has drastically disappointed over the last three months, Services (higher) and Manufacturing (lower) based on Markit's PMI survey have diverged markedly until today's July print which saw manufacturing catch up...

 

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

“The July PMI surveys show an economy gaining growth momentum at the start of the third quarter, enjoying the strongest monthly improvement in business activity since January.

 

“Most encouraging was an upturn in new order inflows to the second-highest seen over the past two years, which helped push the rate of job creation to the highest so far this year, indicative of non-farm payrolls growing at a rate of around 200,000.

 

“The principal weak spot in the economy remained exports, with foreign goods orders dropping – albeit only marginally – for the first time since last September, often blamed on the strength of the dollar.”

 

“The overall rate of expansion remains modest rather than impressive. The surveys are historically consistent with annualized GDP growth of approximately 2%, but the signs are that growth could accelerate further in coming months.

 

We leave you with UBS' comment which seemed to sum things up rather well:

Manufacturing purchasing managers' opinion polls are due. Markets and media love this data. Including preliminary data, it is out twice a month. There is lots of it. There is lots of superficially interesting details. The fact that the correlation of this data to reality has collapsed does not seem to matter - it is something to talk about. 

 

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Justin Case's picture

They are trading data sheets. Next month the EU will display those merican data sheets. They use the same data manufacturer.

Extend and pretend, evry ting is AWESOME baby!!!

Perimetr's picture

Thanks (NOT) to ZH for putting up this crap propaganda "news" story

 

Also thanks -- NOT-- for the endless ads and pop-ups that appear these days whenever I go the ZH site

It's gotten to the point where the page has to reload

because of all the CRAP ADS that ZH has to download before the actual story appears.

Why bother?

 

Justin Case's picture

Let me help you out. I'll show you where you came in.

Silver Savior's picture

So they are manufacturing all this stuff so it will sit on store shelves then get marked down and thrown away? lol. There is no market. People are broke. 

Solio's picture

Graph-master disaster.

Too-Big-to-Bail's picture

The World's only hope for a saviour now will be discovering extraterrestrial life on Mars, so we can sell all this shit to them to avoid deflation

 

Oh, and maybe then the US will have a new, more credible enemy to warrant massive new injections of tax money into the Military Industrial Complex (meanwhile while we are still selling all them Martians the shit we can't sell to all the debt-ridden Earthlings).

rejected's picture

Back up again,,,, I'd be embarrassed to print this stuff.

ElTerco's picture

Where's the increase is US production? Automobile manufacturers?