80% Of The World Is Now In Contraction

With the US closed today, the rest of the world is enjoying a moderate rise in risk for the same old irrational reason we have all grown to loathe in the New Normal: expectations of more easing, or "bad news if great news", this time from China, which over the weekend reported the first official sub-50 PMI print declining from the magical 50.1 to 49.2, as now even the official RAND() Chinese data has joined the HSBC PMI indicator in the contraction space for the first time since November. Sadly, following today's manufacturing PMI update, we find that the rest of the world is not doing any better, and in fact of the 22 countries we track, 80% are now in contraction territory. Read more >>

US Manufacturing Falls To Second Lowest Level Since The Crisis

U.S. manufacturing grew at the slowest pace since the economy emerged from the financial crisis in 2009 this July, new data out of MarkitEconomics shows. The headline manufacturing index declined 80 basis points during the month to 51.8. Economists polled by Bloomberg had forecast a narrower fall to 52.0. New orders and output both expanded in July, but did so at lower rates that recorded at the start of the summer. Read more >>

Manufacturing Slump Deepens From Euro Area to China

Euro-area manufacturing output shrank at the fastest pace in three years in June and a Chinese output gauge indicated contraction as Europe’s worsening fiscal crisis clouded global economic-growth prospects.

A gauge of euro-region manufacturing fell to 44.8 from 45.1 in May, London-based Markit Economics said today in an initial estimate.

That’s the lowest in 36 months. The preliminary reading was 48.1 for a Chinese purchasing managers’ index from HSBC Holdings Plc and Markit. A reading below 50 indicates contraction. The euro area’s turmoil is undermining global growth by eroding confidence of investors and consumers as companies step up job cuts.

Manufacturing in the U.S. probably expanded at a weaker pace in June, a Bloomberg News survey shows. While Greece’s Antonis Samaras was sworn in as prime minister with a coalition that will seek relief from austerity measures, Group of 20 leaders this week pushed Europe to step up measures that might contain the crisis. Read more >>