U.S.-Minus-Ezone Manufacturing PMI Spread Widens to a Nine-Month High
December 3, 2013
The U.S. purchasing managers index increased 0.9 points to 57.3 last month, whereas Euroland’s measure of manufacturing activity went up only 0.3 points to 51.6. The monthly average of the euro exceeded $1.3000 for a sixth straight month. Because of a big export component in demand for manufactured goods, the relative competitiveness of Euroland manufacturing is heavily influenced by movements in the euro.
The composition of the U.S. PMI survey was healthier than the overall summary index. Sub-component gauges for jobs, orders, and production climbed last month by 3.3, 3.0 and 2.0 points. Pricing pressure, however, slipped to a reading of 52.5 from 55.5 in October. Many economies will experience less inflation in 2014 than 2013.
Euro area members generated mixed PMI results. The national PMI readings for Ireland, Spain, and France fell by 2.5, 2.3, and 0.6 points. In contrast, the Dutch, Greek, Austrian, German and Italian PMIs respectively improved by 2.4, 1.9, 1.6, 1.0 and 0.7 points. Three of those members — Greece, Spain, and France — had readings below 50, signifying a deterioration of factory sector conditions between October and November.
| Mfg PMIs | U.S. | Euroland | Spread | EUR/USD |
| Jan 2012 | 54.1 | 48.8 | +5.3 | 1.290 |
| February | 51.9 | 49.0 | +2.9 | 1.323 |
| March | 53.3 | 47.7 | +5.6 | 1.320 |
| April | 54.1 | 45.9 | +8.2 | 1.315 |
| May | 52.5 | 45.1 | +7.4 | 1.280 |
| June | 50.2 | 45.1 | +5.1 | 1.254 |
| July | 50.5 | 44.0 | +6.5 | 1.230 |
| August | 50.7 | 45.1 | +5.6 | 1.255 |
| September | 51.6 | 46.1 | +5.5 | 1.286 |
| October | 51.7 | 45.4 | +6.3 | 1.297 |
| November | 49.9 | 46.2 | +3.7 | 1.283 |
| December | 50.2 | 46.1 | +4.1 | 1.313 |
| Jan 2013 | 53.1 | 47.9 | +5.2 | 1.330 |
| February | 54.2 | 47.9 | +6.3 | 1.334 |
| March | 51.3 | 46.8 | +4.5 | 1.295 |
| April | 50.7 | 46.7 | +4.0 | 1.301 |
| May | 49.0 | 48.3 | +0.7 | 1.299 |
| June | 50.9 | 48.8 | +2.1 | 1.319 |
| July | 55.4 | 50.3 | +5.1 | 1.309 |
| August | 55.7 | 51.4 | +4.3 | 1.331 |
| September | 56.2 | 51.1 | +5.1 | 1.335 |
| October | 56.4 | 51.3 | +5.1 | 1.364 |
| November | 57.3 | 51.6 | +5.7 | 1.349 |
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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