Strength has been noticeably upgraded in the manufacturing PMI sample,
finishing June at 55.4 vs a 54.6 mid-month flash result that had the
report warning about a "clear loss of momentum". But the report is still
downbeat, stressing that the final result for June is the lowest in
four months and that both new orders and output posted their slowest
rates of growth since November last year.
The report is blaming
tariffs for a slight dip in export orders and another sharp rise in
input costs with signs of capacity stress coming from record delays in
deliveries. The sample reports pricing power with selling prices rising
at the second fastest rate in 7 years and tied in part to pass through
of high oil prices.
There's usually not much change between the
flash manufacturing PMI and the final manufacturing PMI and June's
results are unique for this series, implying a roughly 56 plus pace for
the last half of the month. And for the quarter as whole, the PMI posted
its strongest performance since third quarter of 2014. The final
results for June seem to bely the report's modest assessment.
No comments:
Post a Comment