Global Flash Manufacturing PMI Ticks Up In July
Callum Thomas | Jul 25, 2017 12:10AM ET
The July round of flash manufacturing PMIs showed a slight but important rebound in the "global flash manufacturing PMI" (an indicator we put together based on the Markit readings). Our data show the global flash reading up +0.4pts to 54.3 - which is the highest reading since February this year, thus while the move is not huge, it is very important that the indicator has begun to accelerate again after a period of consolidation. On the detail, it was driven by a bond yields to move higher. For now at least it removes some of the doubt that the softer June reading brought, and lines up with our broadly constructive medium term view on global growth.
The "global flash manufacturing PMI" improved to a 6-month high in July, and while the move was small, the fact it's accelerating again is very important and follow-through will be key.
As the companion chart shows (6-month rate of change), acceleration is just as important as levels, and after the big acceleration in 2016 there has been a reset, so if we do see follow-through on the July improvement then that will provide fuel to higher bond yields.
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