Global| Jul 24 2008The MFG and Services PMIs Simply are Dropping Rapidly
Summary
There is little let up in the pace of the drop in the Euro Area MFG and services PMIs. Indeed their rate of decline has picked up pace. The services PMI has been in existence for 31 months and it is at its lowest level since its [...]
There is little let up in the pace of the drop in the Euro
Area MFG and services PMIs. Indeed their rate of decline has picked up
pace. The services PMI has been in existence for 31 months and it is at
its lowest level since its inception. The MFG is at its lowest level
for that period as well.
The MFG index has been in existence much longer. And for that
longer period back to 1996 it stands in the 26th percentile of its
range - a low reading.
Except for January of this year when the services index fell
very sharply, the past two months represent the fastest six month rate
of decline for the services index. For MFG the July decline is the
fastest six month decline in this cycle. This suggests that the
downward pressure on the Euro Area economies is becoming more intense.
| FLASH Readings | ||
|---|---|---|
| Markit PMIs for the Euro-Area-13 | ||
| MFG | Services | |
| Jul-08 | 47.54 | 48.26 |
| Jun-08 | 49.07 | 49.46 |
| May-08 | 50.52 | 50.59 |
| Apr-08 | 50.85 | 51.78 |
| Averages | ||
| 3-Mo | 49.04 | 49.44 |
| 6-Mo | 50.37 | 50.67 |
| 12-Mo | 51.56 | 52.54 |
| 31-Mo Range | ||
| High | 57.61 | 61.21 |
| Low | 47.54 | 48.26 |
| % Range | 0.0% | 0.0% |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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