Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: PMI Shows Manufacturing Slump Abating

By

Less bad is not the same as better, but we'll take that for now.

PrintPRINT
MINYANVILLE ORIGINAL Markets are set to rally today after global PMI reports came in better than expected, but concerns that the global economy is continuing to shrink remain.

Several purchasing managers' indexes came out this morning and over the weekend, and many of them are matching or exceeding economists' expectations. While there isn't much news of outright expansion, many of the most important economies are stabilizing. Overall, manufacturing is in a deep slump, but at least contractions are slowing down. Here are a few highlights. A number above 50 indicates an improvement in business conditions in the sector over the month, and below 50 signals a contraction.
  • China: The second-largest economy's manufacturing sector is still contracting, but less so than before. The official manufacturing PMI rose to 49.8 from 49.2 in August. The Markit estimate rose to 48.0 from 47.7. This is the seventh straight quarter of contraction for Chinese manufacturing.
  • Germany: The contraction in German manufacturing narrowed to a six-month high of 47.4 from 44.7 in August, beating economists' estimates by 0.1 point.
  • Eurozone: The 17-member currency union's manufacturing index gained 1 point to 46.1 in September, beating the earlier estimates by 0.1 point.
  • Spain: Still lagging on the eurozone, Spain's manufacturing inched up 0.6 points to 44.0
  • France: Manufacturing slumped by 3 points to 42.7, the country's worst month in 41 months.
  • Japan: The Bank of Japan's Tankan survey for the third quarter came in slightly better than expected. Capital expenditures rose by 1.8 points to 5.8. Large manufacturers are doing somewhat better than small manufacturers, but both groups are in decline.
  • United Kingdom: Manufacturing in Britain sank to 48.4 from 49.6 in August.
  • United States: At 9:00 a.m. EST, economists expect US manufacturing to stay steady at 51.5, a modest expansion. The Institute for Supply Management's own survey will come out an hour later. This indicator will probably signal a slight contraction of 49.7, up from 49.6.

< Previous
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE