First the good news: of the 28 global regions that have reported PMIs so far (the US Markit PMI is due later today), 18 posted a print of over 50, or indicating manufacturing expansion.
Now the bad news: comparing August to July PMI data saw a deterioration in 19 of the 28 countries, or more than two thirds, suggesting that while the global economy is not in a recession yet, absent some dramatic improvement, which in this day and age would mean another dramatic bout of monetary easing since fiscal stimulus stopped doing anything ever since central bankers took over in 2009, a global economic contraction is just around the corner.
Here is the detail from Bank of America:
World: On the first workday of a new month, global PMI manufacturing surveys are released around the world. That gives us an early read on the state of manufacturing. As the below table shows, 28 regions have reported so far. Nine saw improvements in their manufacturing sectors in July, and 19 recorded a weakening. A reading above 50 reflects expansion, while below 50 indicates contraction. In this regard, there were 18 countries in positive territory and 10 in negative. In particular, Hungary and Switzerland moved from contraction to expansion, while China, South Africa and Turkey did the reverse.
And visually:
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Rate hike anyone?
