U.S. Factory PMI Drops to 77-Month Low While Eurozone Counterpart Hits 19-Month High
December 1, 2015
A further sharp appreciation of the dollar against the euro in November was probably partly responsible for the divergent trends of the U.S. and Eurozone manufacturing purchasing manager indices. The rightmost column below are monthly averages of the EUR/USD relationship.
The U.S. PMI fell 1.5 points and was below the 50 no change level for the first time since November 2012. The sub-indices for orders, production and prices respectively tumbled 4.0, 3.7 and 3.5 points between October and November. Jobs, in contrast, rose 3.7 points.
Among members of Euroland, the PMI for Greece reached an 8-month high, and Italy’s reading was the best in four months. The Spanish and German indices were at 3-month highs. New business and production rose at the fastest pace in Euroland in a year and a half, while input prices continued to decline. A weaker euro promotes demand for exports of manufactured goods and import-competing goods.
| Mfg PMIs | U.S. | Euroland | Spread | EUR/USD |
| 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 |
| February | 54.3 | 53.2 | +1.1 | 1.366 |
| March | 54.4 | 53.0 | +1.4 | 1.380 |
| April | 55.3 | 53.4 | +1.9 | 1.380 |
| May | 55.6 | 52.2 | +3.4 | 1.374 |
| June | 55.7 | 51.8 | +3.9 | 1.360 |
| July | 56.4 | 51.8 | +4.6 | 1.354 |
| August | 58.1 | 50.7 | +7.4 | 1.332 |
| September | 56.1 | 50.3 | +5.8 | 1.290 |
| October | 57.9 | 50.6 | +7.3 | 1.268 |
| November | 57.6 | 50.1 | +7.5 | 1.247 |
| December | 55.1 | 50.6 | +4.5 | 1.232 |
| Jan 2015 | 53.5 | 51.0 | +2.5 | 1.162 |
| February | 52.9 | 51.0 | +1.9 | 1.135 |
| March | 51.5 | 52.2 | -0.7 | 1.083 |
| April | 51.5 | 52.0 | -0.5 | 1.081 |
| May | 52.8 | 52.2 | +0.6 | 1.116 |
| June | 53.5 | 52.5 | +1.0 | 1.123 |
| July | 52.7 | 52.4 | +0.3 | 1.101 |
| August
September October |
51.1
50.2 50.1 |
52.3
52.0 52.3 |
-1.2
-1.8 -2.2 |
1.114
1.123 1.121 |
| November | 48.6 | 50.1 | -4.2 | 1.076 |
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Manufacturing PMIs
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