PMI results – US and eurozone up, China down

Activity in the US manufacturing expanded in June, according to a key survey by data provider Markit.

The US PMI for June was 53.6, a slight drop from the May reading of 54.0. (Figures over 50 indicate expansion in the sector, while readings under 50 indicate contraction).

The US manufacturing sector has been the recipient of positive sentiments in recent times but this was the worst result for the index since October 2013.

Meanwhile, HSBC’s China PMI for June was 49.4, up from the May reading of 49.2 but still below the 50 cut off mark.

Still, the official China PMI for June was 50.2 so if there was any contraction in that nation’s manufacturing sector it was slight.

Moving north, it seems the Greek debt crisis has yet to have a negative effect on Europe’s manufacturers. Markit’s Eurozone PMI for June was 52.5, an increase from the May figure of 52.2 and the best result for 14 months.

As reported yesterday, June was a bad month for Australian manufacturers. The Australian Industry Group’s PMI for June was 44.2, down from May’s 52.3. The May result bucked a trend, given that the five previous results were under 50.

“Further declines in mining and other business investment in machinery and equipment, and a still subdued economic outlook, are weighing more heavily on the manufacturing sector than any positive effects of the Federal Budget and recent interest rate cuts,” said the Ai Group’s chief executive, Innes Willox, in a statement.

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