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(Wallace Refiners) – There has been some good manufacturing data out this morning and this follows on from some of the positive data from the Asian session overnight. Most of the readings beat their previous numbers but all of the manufacturing PMI readings beat the analyst consensus estimates this time out.
The EU number for April came in at 63.3 vs the expected number of 62.0. This was bolstered by the German figure hitting 66.4 just under the 65.8 expected. The EU Markit PMI report stated, “Eurozone business activity grew at a stronger rate in April, the rate of increase accelerating to the fastest since last July as a record expansion of manufacturing output was accompanied by a return to growth in the service sector for the first time since last August.”. The only major concern is if commodities supply can keep up with demand. Chris
Williamson, Chief Business Economist at IHS Markit said: “In a month during which virus containment measures were tightened in the face of further waves of infections, the eurozone economy showed encouraging strength.”.
In the UK, the PMI report said the exceptionally high reading also reflected another rapid lengthening of suppliers’ delivery times during April (this component has a 15% weight in the Manufacturing PMI). Production volumes increased to the greatest extent since last August, with particularly strong momentum seen among Food & Drink manufacturers due to the reopening of hospitality businesses.
Duncan Brock, Group Director at CIPS, said “Whilst business volumes expanded, supply chain performance remained under par and 57% of UK manufacturers reported longer waiting times. Suppliers gave both Brexit and covid-related reasons for slower response times but as 67% of respondents said they were paying more for manufacturing inputs continuing inflationary pressure may dampen ongoing recovery in the sector.”.
Breakdown of the numbers and what to expect later in the U.S. session:
UK PMI Manufacturing SA (Apr): 60.7 vs exp 59, prev 58.9.
French Manufacturing PMI (Apr) 59.2 vs exp 59.0 vs prev 59.3
German Manufacturing PMI (Apr) 66.4 vs exp 65.8 vs prev 66.6
EU Manufacturing PMI (Apr) 63.3 vs exp 62.0 vs prev 62.5
In Asia, Japanese Manufacturing PMI (Apr) 53.3 vs prev 52.7 and Australia Manufacturing PMI 59.6 vs prev 56.8
Later U.S. Manufacturing PMI (Apr) expected to rise to 60.5 vs prev 59.1
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