U.S. Advantage in Manufacturing Over Euro Area Held Generally Steady in June
July 1, 2009
| Mf’g PMI’s | United States | Euroland | Spread | EUR/USD |
| Feb 2008 | 48.8 | 52.3 | -3.5 | 1.475 |
| March | 49.0 | 52.0 | -3.0 | 1.553 |
| April | 48.6 | 50.7 | -2.1 | 1.574 |
| May | 49.3 | 50.6 | -1.3 | 1.555 |
| June | 49.5 | 49.2 | +0.3 | 1.557 |
| July | 49.5 | 47.4 | +2.1 | 1.577 |
| August | 49.3 | 47.6 | +1.7 | 1.497 |
| September | 43.4 | 45.0 | -1.6 | 1.437 |
| October | 38.7 | 41.1 | -2.4 | 1.331 |
| November | 36.6 | 35.6 | +1.0 | 1.268 |
| December | 32.9 | 33.9 | -1.0 | 1.351 |
| Jan 2009 | 35.6 | 34.4 | +1.2 | 1.326 |
| Feb 2009 | 35.8 | 33.5 | +2.3 | 1.303 |
| Mar 2009 | 36.3 | 33.9 | +2.4 | 1.306 |
| Apr 2009 | 40.1 | 36.8 | +3.3 | 1.318 |
| May 2009 | 42.8 | 40.7 | +2.1 | 1.365 |
| Jun 2009 | 44.8 | 42.6 | +2.2 | 1.401 |
The rates of factory sector contraction slowed in tandem last month in the United States and Euroland. Readings below 50 connote contracting activity. The closer the result is to 50, the more gentle is the rate of contraction. Except in April, the spread between the U.S. reading and Euroland’s has hovered between 2.0 points in June and 2.4 points in March since mid-winter. The Euroland sub-component scores for production and export orders were their highest in June since August 2008. Since February, however, the euro has risen from $1.30 to $1.40. After the euro previously had also ranged above $1.40 in early 2008, Euroland relinquished its factory-sector advantage to the United States. It would not be surprising to see the spread that now favors the United States increase anew in the months ahead.
Copyright Larry Greenberg 2009. All rights reserved. No secondary distribution without express permission.
ShareThis
