Technical & Fundamental Oil Reports Specialists

Follow us

Dismal PMIs = Record highs

Published Friday, August 22nd, 2014

As always headlines only tell part of the story but the juxtaposition of poor PMI data from China and Europe matched by an S&P record high requires an explanation.

The Eurozone overall PMI for August fell to 52.8 from 53.8 in July, including a fall for Germany and only a 50 for France. Unemployment across the region is at 11.5% with youth unemployment at 23.1%. The ECB is targeting an inflation rate of 2% but it is currently at 0.4%. If it continues running at these levels through September the Eurozone may claw its way to a 0.3% growth rate. The Eurozone is stagnating and deflating.

Over in China the flash manufacturing PMI came in at 50.3, down from 51.7 in July and a three-month low. It was a big blow to those who thought that China had recovered its poise. Meanwhile over in the US the Philly factory index rose to its highest level since March 2011, jobless claims hit a seven-year low, home sales are booming again and the Conference Board leading economic index rose far more than expected.

to read the rest of the report, please click here 

Posted by David Hufton