Markit PMI Manufacturing Index
Markit Economics’ release of its PMI for the month of July released on Friday, August 1. Markit’s U.S. Manufacturing PMI is based on monthly questionnaire surveys of a selected panel of over 600 companies from all areas of U.S. manufacturing activity.
Markit PMI July reading
The flash (indicative) index for July had come in at 56.3 versus 57.3 in the final for June. The final July reading also came in strong with a 55.8 index points. July’s report was led by improvement in new orders, while exports orders slowed to a six-month low. Strength in new orders readings point to a rising rate of output in the months ahead.A clear negative in the report wasemployment where growth was the weakest in more than a year.
The performance of Industrials exchange-traded funds (or ETFs) like the SPDR Industrial Select Sector Fund (XLI), which has companies like General Electric Co. (GE) and Boeing Co. (BA) in its portfolio, the Vanguard Industrials Index Fund (VIS), and the iShares Dow Jones U.S. Industrial Sector Index Fund (IYJ), serve as a good indicators with respect to the industrial sector.
The manufacturing sector is well supported by the service sector, which accounts for more than three-quarters of the U.S. GDP, according to the World Bank. The service sector drives economic activity and growth. Let’s see what key releases help gauge the performance and activity of the service sector in the U.S. in the next part of this series.