PMI Manufacturing Sample Strength Upgraded

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.