Telling It Like It Is: Latest PMIs Reveal Truth About the Global Economy

The second half of the year has begun, and…one of the best leading indicators that can shed light on the health of the economy is the purchasing managers index (PMI). The latest local readings of the manufacturing PMI for countries around the world collectively…give investors a critical insight into the pace of economic growth by month [and they can be found below.] Words: 550

So says Sam Ro (www.businessinsiders.com) in edited excerpts from his original article.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

Ro goes on to say, in part:

PMIs are based on monthly surveys of carefully selected companies. These provide an advance indication of what is really happening in the private sector economy by tracking variables such as output, new orders, stock levels, employment and prices across the manufacturing, construction, retail and service sectors.

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The PMI surveys are based on fact, not opinion, and are among the first indicators of economic conditions published each month. The data are collected using identical methods in all countries so that international comparisons may be made.

• Greece: Markit Greece Manufacturing PMI — 40.1, down from 43.1 in May
• Spain: Markit Spain Manufacturing PMI — 41.1, down from 42.0 in May
• Italy: Markit / ADACI Italy Manufacturing PMI — 44.6, down from 44.8 in May
• Germany: Markit / BME Germany Manufacturing PMI — 45.0, down from 45.2 in May
• France: Markit France Manufacturing PMI — 45.2, up from 44.7 in May
• Norway: 46.3, down from 54.5 in May
• Eurozone: Markit Eurozone PMI — 46.4, up from 45.0 in May
• Vietnam: HSBC Vietnam PMI — 46.6, down from 48.3 in May
• Australia: AiG and PwC PMI — 47.2, up from 42.4 in May
• Sweden: Swedbank PMI — 47.4, down from 48.0 in May
• Poland: HSBC Poland Manufacturing PMI — 48.0, down from 48.9 in May
• Switzerland: SVME Credit Suisse Swiss Manufacturing PMI — 48.1, down from 45.4 in May
• South Africa: Kagiso Tiso SA Manufacturing PMI — 48.2, down from 53.6 in May
• China: HSBC China Manufacturing PMI — 48.2, down from 48.4 in May
• Brazil: HSBC Brazil Manufacturing PMI — 48.5, down from 49.3 in May
• UK: Markit / CIPS UK Construction PMI — 48.6, up from 45.9 in May
• Global: JPMorgan Global Manufacturing PMI —48.9, down from 50.6 in May
• Netherlands: NEVI Netherlands Manufacturing PMI — 48.9, up from 47.6 in May
• Taiwan: HSBC Taiwan Manufacturing PMI — 49.2, down from 50.5 in May
• South Korea: HSBC South Korea Manufacturing PMI — 49.4, down from 51.0 in May
• Czech Republic: HSBC Czech Republic Manufacturing PMI — 49.4, up from 47.6 in May
• Japan: Markit/JMMA Japan Manufacturing PMI — 49.9, down from 50.7 in May
• Austria: Bank Austria Manufacturing PMI — 50.1, down from 50.2 in May
• China: Official PMI — 50.2, down from 50.4 in May
• Indonesia: HSBC Indonesia Manufacturing PMI — 50.2, up from 48.1 in May
• Singapore: Singapore Institute of Purchasing & Materials Management — 50.4, unchanged from May
• Russia: HSBC Russia Manufacturing PMI — 51.0, down from 53.2 in May
• Turkey: HSBC Turkey Manufacturing PMI — 51.4, up from 50.2 in May
• USA: Markit US Manufacturing PMI — 52.5, down from 54.0 in May
• Hungary: Halpim Hungary Manufacturing PMI — 52.8, up from 52.3 in May
• Ireland: NCB Republic of Ireland Manufacturing PMI — 53.1, up from 51.2 in May
• United Arab Emirates: HSBC UAE PMI— 53.2, down from 53.8 in May
• Canada: RBC Canadian Manufacturing PMI — 54.9, up from 54.7 in May
• India: HSBC India Manufacturing PMI — 55.0, up from 54.8 in May
• Mexico: HSBC Mexico Manufacturing PMI — 55.9, up from 55.2 in May
• Saudi Arabia: SABB HSBC Purchasing Managers’ Index — 59.7, down from 60.4 in May

[From Frank Holmes in a post on www.usfunds.com] Manufacturing around the world weakened in June, according to the JP Morgan Global Manufacturing Purchasing Managers’ Index (PMI). Its reading of 48.9 was the lowest in three years and the first dip below 50 since September 2011. The current reading is also below the three-month moving average for the second month in a row. As you can see on the chart, PMI crossed below the three-month in May.

 

[From Eric Platt in a post on www.businessinsiders.com] Below we present two maps. First, the world map updated with revised June PMI results. You’ll notice the sea of red in Europe has moderated somewhat, but growth in Eastern Europe and Asia declined — and even contracted in some countries.

 

 

And the second, with May PMI figures.

 

 

[According to Joe Weisenthal, in a post also on www.businessinsider.com,] “the change in the New Orders Index [for the U.S. as shown in the chart below from the latest SMI report] compared to the previous months was one of the worst months in history. The last time there was a worse decline, it was right after 9-11 and the time before that it was in the early 80s.” [Also read this article]

 

 

Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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