04 July 2017
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Manufacturing surveys in the Eurozone, UK and US all showed expansion in the sector in June.

Manufacturing surveys in the Eurozone, UK and US all showed expansion in the sector in June.

By Khatija Haque

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Manufacturing surveys in the Eurozone, UK and US all showed expansion in the sector in June.  The Eurozone manufacturing PMI was marginally higher than forecast at 57.4 in June, signalling continued strong manufacturing growth in the bloc last month.  The UK’s manufacturing PMI was disappointing in contrast, slipping to 54.3 from 56.7 in May.  Although the June PMI reading in the UK was softer than expected, the average PMI for Q2 is the highest in 3 years, suggesting that the weakness in the pound has supported manufacturing exports and domestic demand has remained relatively robust.    

In the US, the ISM manufacturing index surged to 57.8 in June from 54.9 in May, the highest reading in nearly 3 years, and well above analysts’ forecasts.  The employment component of the ISM survey rose sharply in June which bodes well for non-farm payrolls data which is due to be released on Friday.  US markets are closed today after a half-day session yesterday. 

In Australia, retail sales in May grew by more than forecast, rising 0.6% m/m.  This follows a strong 1.0% m/m rise in April as well.  The Reserve Bank of Australia is due to announce its rate decision after this daily is published this morning; the cash rate is expected to remain unchanged at 1.5%. 

Qatar’s foreign minister yesterday hand-delivered a response to the demands from Saudi Arabia, UAE, Bahrain and Egypt, despite a two-day extension announced earlier on Monday.  No further details were provided but markets responded positively to the news, with Qatar’s CDS narrowing slightly and Qatar’s benchmark equity index closing 1.3% higher yesterday. 

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Written By

Khatija Haque Head of Research & Chief Economist


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