Following this morning’s post-Brexit puke in UK PMI, Markit reports July’s preliminary manufacturing PMI considerably better than expected (up from 51.3 to 52.9 against 51.5 forecast). This follows the modest rebound in Industrial Production and is the highest PMI since Oct 2015. Manufacturing payrolls surged at the fastest pace in 12 months and new business expanded at the fastest since Oct 2015.
Commenting on the flash PMI data, Chris Williamson, Chief Economist at Markit said:
“July saw manufacturers battle against a strong dollar, the ongoing energy sector downturn and political uncertainty ahead of the presidential election, yet still achieved the best growth seen since last year.
“It remains too early to say if this is the start of a stronger upturn, but this is a welcome and encouraging sign of revival after the second quarter, in which the PMI signalled the sector’s worst performance for over six years.
“In particular, an upturn in hiring which resulted in the strongest job growth for a year suggest companies are feeling brighter about the outlook and starting to expand capacity again.”
So China ‘stable’, Brexit ‘over’, record high stocks, good payrolls, rising inflation, and rebounding manufacturing? Data-dependent Fed is going to need more excuses.
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