U.S. Birthday Holiday Underway But Also Many Service Sector Purchasing Manager Surveys Released
July 3, 2026
Overnight dollar movement was generally muted except for a 0.6% drop against the Korean won. The weighted DXY dollar index is down only 0.1%.
There have been several significant upward movements of equity markets around the Pacific Rim led by a 5.8% rally in South Korea and including gains of 2.3% in Indonesia, 1.5% in Japan, 1.4% in Australia, and 1.3% in Hong Kong. The German Dax and Paris CAC are pretty flat, while the British FTSE has slipped 0.5%. U.S. stock exchanges and banks are closed for the extended fourth of July semiquincentennial celebration of the Declaration of Independence.
Ten-year sovereign debt yields have risen by two basis points in Germany, Britain, France, Italy and Spain.
The price of West Texas Intermediate crude oil is 0.1% softer this morning. Gold and silver have strengthened 1.6% and 0.9%. Bitcoin’s price has risen too, climbing 0.7%.
In Turkey, where illusive price stability has been an acute problem for some time (the CPI cresting in 2022 at 85.5% and the PPI at 157.7%), consumer price inflation edged down to a 3-month low of 32.1% in June. Such has ranged between 30.6% and 33.5% for the past 12 months. June’s rate of producer price inflation in Turkey was 26.1%, a 3-month low as well.
In Armenia, consumer price inflation bounced up 0.9 percentage points to a 2-month high of 5.1% last month. Georgian CPI inflation also carried a handle of five, printing at a 2-month high of 5.8%, while Vietnamese CPI inflation eased back to a 4-month low of 4.7%.
French industrial production in May dipped 0.1% on month but posted the largest year-on-year advance (3.2%) in 44 months. Spanish industrial production climbed 1.2% and was 3.4% higher than in May 2025. Italian retail sales increased 0.2% in May and posted a 2.2% year-on-year advance.
Euroland’s current account surplus of EUR 78 billion in the first quarter was up from EUR 65 billion a year earlier and equal to 1.9% of GDP.
Among the many purchasing manager survey results for June that were reported today,
- Euroland’s final composite PMI reading was revised 0.5 points higher to a 3-month high and neutral 50.0. The inflationary impulse from the Middle Eastern war was found to be receding “markedly.” Ezone member readings ranged from France’s 2-month high of 47.2 to Ireland’s 7-month high of 54.4. Euroland’s service sector PMI of 49.4 also represents a 3-month high.
- The revised British composite PMI printed at a 14-month low of 49.3 and associated with a 41-month low services PMI of 48.8.
- China’s composite and service sector purchasing manager indices in June of 53.6 and 54.1 were each two-month lows.
- India’s service sector PMI dropped to a 17-month low of 57.1, depressing the composite score to a 3-month low of 57.6.
- Australian composite and service sector PMI readings of 50.4 and 50.5 were at two-month lows.
- Japanese composite and service PMIs printed at 3-month highs of 52.8 and 52.2.
- The Swedish composite and service sector readings, each a 7-month high, were 57.1 and 56.6.
- Russia’s self-inflicted and prolonged war is taking an increasing economic toll. The service sector PMI there fell a half point ot a 9-month low and sub-50 score of 48.2. Russia’s composite PMI of 48.5 was a 3-month low.
- South Africa’s manufacturing PMI rose from 49.6 in May to a 2-month high of 50.5.
- The non-oil purchasing manager index of the United Arab Emirates fell 1.8 points to a 65-month low of 50.8.
- Singapore’s private PMI reading of 57.4 was a 2-month high.
- Lebanon’s private PMI reading flipped into above-50 territory at 50.3 versus 49.7 in the prior month.
Copyright 2026, Larry Greenberg. All rights reserved.
Tags: composite and service sector purchasing manager surveys, Euroland current account, Turkish CPI and PPI
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