Results for: PMI

China’s factory activity contracted for the second consecutive month in June, according to official data released on Sunday. This underscores the country’s fragile economic recovery ahead of a key political gathering focused on deepening reforms. The manufacturing purchasing managers’ index (PMI), a key gauge of factory output, remained at 49.5 in June, signaling a decline in activity. While the non-manufacturing PMI expanded, it also registered a decline from the previous month. The data highlights challenges for policymakers, including a prolonged debt crisis in the property sector, sluggish consumption, and high unemployment.

Philip Morris International (NYSE: PM) has had a strong start to 2024, with significant growth in its smoke-free portfolio driving better-than-expected first-quarter results. The company’s adjusted diluted earnings per share (EPS) and organic net revenue saw double-digit increases, surpassing market expectations. The expansion of IQOS ILUMA to 64 markets and the strong performance of ZYN, particularly in the U.S. where volumes soared by 80%, contributed to the upbeat figures.

US business activity slowed in April, with demand weakening across the private sector. Inflation rates eased slightly, but input prices remained elevated. The slowdown is a potential sign of relief as the Federal Reserve continues to raise interest rates to combat inflation.

The week kicks off with key economic and earnings releases. The global Purchasing Manager’s Index (PMI) for manufacturing and services is expected to remain steady at 52.0 for the US. New home sales and the Richmond Fed manufacturing index will also be released. The auction of $69 billion in 2-year notes at 1 pm ET bears watching, as two-year yields hover near 5%. After the market closes, earnings reports from Tesla, Visa, and Texas Instruments will cap the day’s events.

As the North American trading session commences, the British pound (GBP) has emerged as the strongest among the major currencies, while the New Zealand dollar (NZD) languishes at the bottom. The US dollar (USD) has generally trended lower since the start of the session. Meanwhile, in the currency markets, USD/JPY has surged to levels last seen in 1990, approaching the 155.00 mark. The current price hovers slightly below this level at 154.78.

In Europe, flash PMI data released today painted a generally positive picture, with most countries exceeding expectations. The United States is set to release its final PMI estimates at 9:45 AM ET, projecting a 52.0 reading for manufacturing (up from 51.9 last month) and 52.0 for services (compared to 51.7 previously).

Later in the day, at 10 AM ET, the US will unveil its new home sales figures, with analysts expecting a rise to 668K from the previous month’s 662K. Additionally, the Richmond Fed manufacturing index is anticipated to improve from -11 last month to -7 (also due at 10 AM ET).

The flow of corporate earnings reports picks up steam today, with Tesla, Visa, and Texas Instruments set to announce their results after the market closes. Several companies have already released their numbers this morning.

The UK’s private sector experienced its fastest growth in almost a year during April, thanks primarily to a robust performance in the service industry. According to experts, this positive economic data suggests that the UK economy is continuing to recover from the recession toward the end of 2023. In April, the closely monitored S&P Global/CIPS flash UK purchasing managers’ index (PMI) reported a reading of 54, up from 52.8 in March. Since May of last year, these preliminary data-based flash figures have been the highest recorded. Any score below 50 indicates contraction, while any score above it indicates growth. Chris Williamson, chief business economist at S&P Global Market Intelligence, commented, ‘Early PMI survey data for April show that the UK economy’s recovery from recession last year has continued to gain momentum.’ ‘While the improving economic recovery picture is welcome news, the upward pressure on inflation will add to concerns that a sustainable path to below-target inflation has not yet been achieved.’ The overall business growth reached its highest level in nearly a year, driven by the service sector’s improved growth, which offset a new decline in manufacturing. This indicates that GDP (gross domestic product) is increasing at a quarterly rate of 0.4% following a 0.3% increase in the first quarter. The survey found that service sector businesses reported a surge in growth over the month, hitting their highest level in 11 months. Companies highlighted increased business and consumer spending, supported by a broader economic recovery.

India’s combined output from manufacturing and services sectors has grown at a rapid pace in April, according to the HSBC Flash Purchasing Managers’ Index (PMI). The services sector activity reached a three-month high, while international sales boosted new order inflows for both manufacturing and services companies.

The Flash Composite PMI in the Euro Area increased to 51.40 points in April, a rise from the previous month’s 50.30 points. This represents an 11-month high for the indicator. However, the Flash Manufacturing PMI decreased to 45.60 points, indicating a 4-month low. On the other hand, the Flash Services PMI increased to 52.90 points, marking an 11-month high for this sector.

India’s business activity has reached its highest level in nearly 14 years, driven by robust demand and easing input inflation. The positive job growth positions India as the fastest-growing major economy in 2022. The flash India Composite Purchasing Managers’ Index (PMI) surged to 62.2 in April, led by strong performance in manufacturing and service sectors.

The French economic landscape presents a mixed picture, with the flash Composite PMI inching up while manufacturing activity declined and services activity expanded slightly in April. Overall, the Composite PMI edged higher to 49.90 points, marking its highest level since May 2023. However, the manufacturing sector saw a downturn, with the PMI declining to 44.90 points. In contrast, the services sector experienced a modest uptick, with the PMI rising to 50.50 points.