U.S. Manufacturing PMI Moved Below Euroland PMI in January
February 3, 2014
The U.S. factory purchasing managers index plunged 5.2 points in January to 51.3 as calculated by the Institute of Supply Management, whereas the euro area manufacturing PMI compiled by Markit Economics rose 1.3 points to 54.0. The spread hadn’t been negative since May 2011 and as deeply negative since August 2008. Each of the January readings was above 50, thus signaling continuing growth in activity.
America’s slower pace of factory growth reflected declines of 13.2 points in new business to 51.5, 6.9 points in production to 54.8, and 3.5 points in jobs to 52.3. Both this deterioration and an acceleration in inflation may have been influenced by harsh weather related to the Polar Vortex.
Within the euro area, the indices of France and Germany improved by 2.3 points and 2.2%, while the Greek index went up 1.6 points. The Dutch score slumped by 2.2 points. Spain’s index fell 1.4 points. Ireland’s and Italy’s readings were down by 0.7 points and 0.2 points.
| 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 | 53.1 | 47.9 | +5.2 | 1.334 |
| March | 51.5 | 46.8 | +4.7 | 1.295 |
| April | 50.0 | 46.7 | +3.3 | 1.301 |
| May | 50.0 | 48.3 | +1.7 | 1.299 |
| June | 52.5 | 48.8 | +3.7 | 1.319 |
| July | 54.9 | 50.3 | +4.6 | 1.309 |
| August | 56.3 | 51.4 | +4.9 | 1.331 |
| September | 56.0 | 51.1 | +4.9 | 1.335 |
| October | 56.6 | 51.3 | +5.3 | 1.364 |
| November | 57.0 | 51.6 | +5.4 | 1.349 |
| December | 56.5 | 52.7 | +3.8 | 1.370 |
| Jan 2014 | 51.3 | 54.0 | -2.7 | 1.361 |
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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