U.S. Retains Narrow Advantage in Manufacturing over Euroland
August 1, 2016
The U.S. manufacturing purchasing managers index fell 0.6 points in July, while its eurozone counterpart dropped by 0.8 points. Each measure remained above the 50 line of demarcation between improving and deteriorating conditions at 52.6 and 52.0, respectively. The dollar on average strengthened a bit over 1.5% month on month to its strongest euro value since January.
The U.S. PMI fell last month in spite of a 0.7-point rise in production, which connotes a faster rate of output growth. the lower Euroland reading mainly reflected the response to the Brexit U.K. referendum in late June. Among reporting members of the eurozone, only The Netherlands experienced a faster rate of improvement in July, but only in Greece and France did conditions outright deteriorate.
The British PMI, which was most directly affected by the June 23 decision to leave the EU, fell to 48.2, a 41-month low, form 52.4 in June.
| 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 |
48.4
48.0 48.2 49.5 51.8 50.8 51.3 53.2 52.6 |
52.8
53.2 52.3 51.2 51.6 51.7 51.5 52.8 52.0 |
-4.4
-4.8 -4.1 -1.7 +0.2 -0.9 -0.2 +0.4 +0.6 |
1.076
1.090 1.087 1.111 1.114 1.134 1.130 1.124 1.106 |
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Tags: U.S. and eurozone PMIs
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