Dutch Manufacturing PMI Drops in August, but Still Strong at 53.9
Business activity dropped to a five-month low in the Netherlands in August. The Manaufacturing PMI reading was 53.9 in August, a dip from July’s 56.0 but quite strong considering the neutral level of 50.0.
Italy’s August Manufacturing PMI slipped to 53.8 level in August, down from July’s four-year-high of 55.3. The reading was well supported by an increase in new orders at manufacturers.
The Eurozone Manufacturing PMI report for August met expectations for Eurozone business activity despite heightening global economic uncertainty. The reading for August was 52.3. It was 52.4 in July.
The Flash Germany Composite Output Index for August rose to 54.0 from 53.7 in July. Service sector activity stood strong at 53.6 index points in August.
Both the manufacturing and service sector contributed positively to business activity growth in Germany in August.
Industrial production in the Eurozone isn’t picking up at the desired pace, despite the depreciating currency that should help boost exports.
All major US exchange-traded funds tracking Eurozone equity fell on August 11 as the ZEW Indicator of Economic Sentiment came out for August.
The iShares MSCI France (EWQ) was up 1.11% at the close of trade on August 10. Industrial production data from France showed weakening industrial activity in June 2015.
Germany’s industrial production fell in June over May, according to a Deutsche Bundesbank report dated August 7. EWG fell 0.31% at the close of trade.
Factory orders in Germany rose by 2% in June, according to a Deutsche Bundesbank report dated August 6. So far, EWG has yielded 5.25% this year.
Poland (EPOL) had some good news for investors in the country and for investors in Germany (EWG). The Polish economy serves as a manufacturing hub for Germany.
The Markit/BME Germany Manufacturing PMI report that came on August 3 indicated that “German manufacturing continues to grow at modest pace in July.”
Markit Economics’ Final Eurozone PMI Composite Output Index report for July exceeded expectations despite the Greek crisis.
UK GDP improved 2.6% at the end of the second quarter. According to economists in a Bloomberg survey, UK GDP is expected to rise by 2.5% in 2015 and 2.3% in 2016.
Economic confidence in the Eurozone got some relief as the Greek crisis settled with the troika granting further aid to Greece.
The Markit Economics report for Germany (EWG) indicated a slowdown in business activity at the onset of the third quarter.
Investors in the Eurozone have been expecting positive economic news from the area. The ECB’s bond buying program has been in effect since March.
In its recent update, the International Monetary Fund’s economic growth projections for the Eurozone, including Lithuania, are unchanged at 1.5% for 2015.
For July 2015, the downward trend in the ZEW Indicator of Economic Sentiment continued for Germany as well as the Eurozone.
According to a Eurostat report released on Tuesday, July 14, industrial production in the Eurozone declined by 0.4% in May.