U.S. Lead in Manufacturing over Euroland Narrowed but Remained Comfortable in August
September 3, 2013
The U.S. manufacturing purchasing managers index rose 0.3 points in August after leaping by 5.5 points in July. Gains of 4.9 points in new business and 5.0 points in prices slightly outweighed drops of 2.6 points in production and 1.1 points in jobs. The U.S.-minus-Ezone PMI differential narrowed 0.8 points to 4.3 points in August, which was the second widest spread since April.
Euroland’s manufacturing PMI improved for a fourth straight month and exceeded the no change threshold of 50 for the second time in a row. The latest reading of 51.4 represented a 26-month high. Among member nations using the euro, the Netherlands (53.5), Austria (52), Ireland (52), Germany (51.8), Italy (51.3) and Spain (51.1) had readings above 50, leaving France’s 49.7 as the only contracting economy of the top five economies.
The euro posted its strongest monthly average value against the dollar since February but has begun September below its August mean.
| 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 |
Copyright 2013, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Manufacturing PMIs
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