…in manufacturing (via Credit Suisse):
The August global manufacturing PMI index fell to 50.1 from 50.6 in July, the lowest level since June 2009. The deterioration also marks the sixth consecutive month of decline and the longest losing streak since 2008. The index is now lower than both the survey’s long-run average (51.9) and the levels reported during the start of the last global recession (e.g., 50.8 in H1 2008). Moreover, the forward-looking new orders component fell further below 50, pointing to poor momentum in the global manufacturing sector in the near term.
The slowdown is broadly observed across major economies, especially in Western Europe. In the US, ISM Manufacturing declined less than expected to 50.6 from 50.9, falling to the lowest level since July 2009. But details were of concern, with higher inventories keeping the headline index above water. New orders remained in the sub-50 territory for the second consecutive month. The deterioration in euro area PMI reports is marked in both core and peripheral euro area economies. The August euro area PMI fell to 49.0, the first below 50 reading since September 2009.
Of note, the German PMI is now at only 50.9, while the France PMI fell below 50. In addition, the Italian PMI dips again below 50 in August. Both the Spanish and Greek PMIs declined in August and remained at the subdued levels of 45.3 and 43.3, respectively. The weak PMI surveys raise doubts on the credibility of current fiscal consolidation programs and increase the pressure on further fiscal retrenchment, especially for the periphery. The UK manufacturing PMI was also weak in August and remained below 50 for a second month in a row.
In Japan, the August manufacturing PMI declined slightly to 51.9, while the three-month moving average continued to improve, indicating that manufacturing activity continues its moderate normalization back towards pre-earthquake level.
… and trade:
Merchandise trade growth slowed across major economies in the second quarter of 2011. Total imports of G7 and BRICS countries grew by only 1.1% in the second quarter compared to 10.1% in the previous quarter. Total export growth slowed to 1.9%, compared to 7.7% in the previous quarter.
Related link:
Wilmot’s PMI tour – FT Alphaville