PMI Update: Dark Clouds and Risk of Rain On Our Parade

In June we reported in PMI PMS that most of the eurozone had contractionary readings (below 50) with Canada showing the greatest growth. With July data coming in we update the global picture. In short, things are getting worse pointing towards a global recession if we are not already there. Specific data follows:


In a Reuters article which gave an update on June data that we missed: UPDATE 1-Canada’s Ivey PMI index unexpectedly falls in June. The Ivey School of Economics index fell to 49.0 from 60.0. Today , from Business Insider, we have the more widely followed RBC index for July which printed at 53.1, down 1.7 from June but still in the growth region above 50.


Mike Shedlock reports Japan Manufacturing PMI Shows Output and News Orders Down at Accelerated Rate, down 2 points to 47.9.


In UK factory slump raises doubts about recession end, Reuters reports the UK PMI dropped three points to 45.4. Zero Hedge reports Global PMI Update: 10 Of 11 European Countries In Contraction. Ireland remains the strongest member at 53.9. The rest are below 50.

The US

MarketWatch reports that US Markit manufacturing survey declines in July, falling to 51.4 from 52.5 in June. The Institute of Supply Managers’ ISM index remained flat at 49.8 (June: 49.7) according to MarketWatch: U.S. ISM survey remains below 50% in July.


Zero Hedge reports that at 50.1, China PMI Misses And Prints Lowest In 8 Months With 10 Of 11 Sub-Indices Contracting. As noted in our earlier post, the official Chinese number is generally higher than the more widely believed HSBC index that has been below 50 for some time although it rose in July to 49.3.

Global Snapshot

As one can see, the bulk of global manufacturing is contracting, not a good sign for a world mired in debt that is looking for economic growth to reduce it.

And from Business Insider today, this summary:


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