Manufacturing Gap Between the United States and Euroland Narrowed Last Month
February 3, 2015
The U.S. minus Ezone factory purchasing managers spread fell to 2.5 points in January from 4.5 points in December and 7.5 points in November. This was the smallest manufacturing gap between the two economies in nine months. A sharp depreciation of the euro, which in January averaged $1.162 or 16% less than in March-April of last year has enhanced the competitiveness of Euroland exports and import-competing goods vis-a-vis the United States.
The U.S. orders sub-index fell by 4.9%, and prices dropped 3.5 points. Production and jobs declined by 1.2 points and 1.9 points, respectively.
Euroland’s PMI printed at a six-month high, masking a 15-month Greek low, an eight-month Irish low, and 2-month lows in the German and Austrian readings. The French PMI was revised down 0.3 points but still exceeded December’s weak 47.5 reading by 1.7 points. Italy’s 49.9 reading was at a 4-month high, and the Dutch and Spanish scores of 54.1 and 54.7 were at four-month highs.
| 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 |
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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