Germany’s manufacturing PMI in July
According to data provided by Markit Economics, the final Markit Germany’s manufacturing PMI (purchasing managers’ index) stood at 58.1 in July 2017 compared to 59.6 in June 2017. The reading met the preliminary market estimate of 58.3.
Some key highlights from the report are as follows:
- Production output showed weaker improvement in July 2017 as compared to June.
- New business orders also improved at a slower rate in July 2017.
- Employment also slowed in July 2017. However, the factory activity improved at a stronger pace in July.
Performance of various ETFs
The iShares MSCI Germany ETF (EWG), which tracks German economic performance, rose 1.4% in July 2017. The iShares MSCI Eurozone ETF (EZU), which tracks the performance of the Eurozone (HEDJ) (FEZ) (IEV), also rose nearly 3.4% during the same month.
The fall in manufacturing PMI was mainly due to weaker export orders. The overseas demand remained weaker in July. However, the domestic economy is doing well. Germany’s Ifo Business Climate Index has also been on a consistent rise, which shows that the economic environment is changing gradually.
In the next part of this series, we’ll analyze France’s manufacturing PMI in July 2017.