Widest U.S. Manufacturing Advantage Versus Euroland in Two Years
March 1, 2017
The Institute of Supply Management’s U.S. manufacturing purchasing managers index jumped 1.7 points in February to a 28-month high of 57.7. This faster improvement of conditions was led by new orders, up 4.7 points, and production, up 1.5 points. Inflationary pressured settled back a point but remained well above the 50 level that separates expansion from contraction and thus further solidifies the chances that the Fed will raise rates this month.
Euroland’s manufacturing purchasing managers index only went up 0.2 points by contrast to a reading of 55.4, according to Markit Economics. The slight quickening of expansion was restrained by declines of 1.7, 1.4 and 0.8 points in the Irish, French and Spanish components. Seven of the eight individual common currency members with individual PMI surveys had scores above 50, Greece being the sole exception.
Even though Euroland’s PMI was at its highest level since April 2011, the U.S. PMI surpassed the Ezone score by 2.3 points in February, most since February 2015.
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 | 53.3 | 51.0 | +2.3 | 1.135 |
March | 52.3 | 52.2 | +0.1 | 1.083 |
April | 51.6 | 52.0 | -0.4 | 1.081 |
May | 53.1 | 52.2 | +0.9 | 1.116 |
June | 53.1 | 52.5 | +0.6 | 1.123 |
July | 51.9 | 52.4 | -0.5 | 1.101 |
August
September October |
51.0
50.0 49.4 |
52.3
52.0 52.3 |
-1.3
-2.0 -2.9 |
1.114
1.123 1.121 |
November
December Jan 2016 February March April May June July August September October November December Jan 2017 February |
48.4
48.0 48.2 49.7 51.7 50.7 51.0 52.8 52.8 49.4 51.7 52.0 53.5 54.5 56.0 57.7 |
52.8
53.2 52.3 51.2 51.6 51.7 51.5 52.8 52.0 51.7 52.6 53.5 53.7 54.9 55.2 55.4
|
-4.4
-4.8 -4.1 -1.5 +0.1 -1.0 -0.5 0.0 +0.8 -2.3 -0.9 -1.5 -0.2 -0.4 +0.8 +2.3 |
1.076
1.090 1.087 1.111 1.114 1.134 1.130 1.124 1.106 1.120 1.121 1.103 1.078 1.054 1.063 1.064 |
Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.