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.

Tags: ,

ShareThis

Comments are closed.

css.php