Deeper Analysis
The U.S. Enjoyed a Bigger Growth Advantage in June than May
July 6, 2017
It was already reported earlier this week by the Institute of Supply Management that the U.S. manufacturing purchasing managers index leaped 2.9 points to a 32-month high of 57.8 in June. This eclipsed a 0.4-point rise in Euroland’s comparable PMI to 57.4. Now comes word that the non-manufacturing U.S. PMI increased 0.5 points to a […] More
Strong Factory Growth in Both the U.S. and Euroland
July 3, 2017
In June, U.S. manufacturing overcame a disadvantage relative the the euro area in a single month, as the euro advanced to its strongest monthly average in a year against the dollar. The U.S. Institute of Supply Management reported a 2.9-point increase in the manufacturing purchasing managers index to 57.8, signifying the strongest rate of improvement […] More
June and the Second Quarter in Figures
July 1, 2017
As in the previous quarter, a slide in the price of oil was a key development during the second quarter, and half of this move occurred in June. Gold also lost value both in June and the whole quarter. A second theme of the period was a shifting view about future monetary policies in the […] More
Comment on Revised U.S. GDP Figures
June 29, 2017
According to revised figures, real GDP expanded 1.4% at an annualized rate between the last quarter of 2016 and the first quarter of 2017. The initial estimate of 0.7% was revised a month ago to 1.2%. Personal consumption (up 1.1% annualized), non-residential business investment (10.4%) and residential construction (13.0%) collectively augmented real GDP growth by […] More
U.S. Non-Manufacturing PMI and Ezone Services PMI Compared
June 5, 2017
The 0.6-point difference in May between the ISM non-manufacturing purchasing managers index (56.9) and the euro zone services PMI compiled by IHS Markit (56.3) was 0.5 points smaller than in April. IHS Markit also measures a U.S. services PMI, and this rose by 0.5 points to 53.6. As was the case with the two economies’ […] More
Marginally Faster Manufacturing Activity in the U.S. and Euroland
June 1, 2017
In May, the U.S. manufacturing purchasing managers index edged 0.1 point higher to 54.9, while Euroland’s PMI gained 0.3 points to 57.0. Both results imply robust expansion. Euroland’s advantage, represented by the difference between the U.S. and Ezone scores widened by 0.2 points to -2.1 points, which as seen in the column labeled “spread” below […] More
May in Figures
June 1, 2017
U.S. and European sovereign debt yields fell during May. Short-term European interest rates also fell in contrast to a rise of the 3-month U.S. deposit rate. In Japan, rates rose at the long end but fell in short maturities. Stock markets improved in all markets examined here except Canada’s. The dollar climbed against sterling and […] More
Some Revealing Excerpts from May 2-3 FOMC Minutes
May 24, 2017
The excerpts below lend credence to rising expectations that the federal funds rate target will undergo its fourth increase at the June meeting. At the same time, great emphasis is placed on ensuring that rate normalization proceed at a gradual pace. The same feeling surrounds balance sheet reduction, which also will proceed at a very […] More
Bari Statement of G7 Finance Ministers and Central Bank Governors
May 14, 2017
Group of Seven finance ministers and central bank chiefs released a five-page statement following their two days of talks in Bari, Italy. The meeting was a preamble to the summit of G7 leaders later this month in Sicily. It will be the first one attended by President Trump, and the broad waves he has been […] More
U.S. Non-Manfacturing PMI and Ezone Services PMI
May 4, 2017
The U.S. non-manufacturing purchasing managers index rose 2.3 points to 57.5 in April, signifying a robust expansion whose rate of growth accelerated significantly that month. Production (up 3.5 to 62.4), orders (up 4.3 to 63.2) and prices (up 4.1 to 57.6) each expanded much more quickly than in March, while jobs continued to grow slowly. […] More
