Global manufacturing numbers have been mixed so far

LONDON (Apr 1)   Manufacturing PMIs around the world have been mixed. One of the main centers of the world (China) had a disappointing result with the sector falling back into contraction. In fact, the Chinese figure fell at its quickest rate in the last two years. "The average of the two (PMIs) is now under 50, and apart from the initial pandemic hit in 2020, is now at its lowest since February 2016," said Sheana Yue, China economist at Capital Economics. She added, "Given the composition of the firms surveyed, the sharper reduction in the Caixin reading suggests the deterioration was more significant among smaller private firms and exporters."

Looking in Europe, the war in Ukraine tightened up supply bottlenecks once again. Chris Williamson, Chief Business Economist at S&P Global noted "Just as the fading of the latest pandemic wave was creating a tailwind for the eurozone manufacturing recovery, with economies reopening and supply chain bottlenecks easing, the war in Ukraine has created an ominous new headwind,". He also noted, "Rates of growth have cooled markedly amid sanctions, soaring energy costs and new supply constraints linked to the war."

In the U.K. it was much of the same the reading hit a 13-month low. Slowing demand and a drop in export orders have been the main concern for this month's report. Looking ahead price pressures look set to continue as the inflation rate continues to climb. GBP/USD continues to move lower and this could add to import costs with both commodities rising and the local currency taking a hit. Later in the session, the market will get the latest figures from the U.S., and the manufacturing figure is expected to print at 58.5 vs the previous reading of 57.3.

Chinese Caixin Manufacturing PMI (Mar) 48.1 vs exp 50.0 prev 50.4
Australian AIG Manufacturing Index (Mar) 55.7 vs prev 53.2
Japanese Manufacturing PMI (Mar) 54.1 vs exp 53.2 prev 52.7
German Manufacturing PMI (Mar) 56.9 vs exp 57.6 prev 57.6
U.K. Manufacturing PMI (Mar) 55.2 vs exp 55.5 prev 58.0
European Manufacturing PMI (Mar) 56.5 vs exp 57.0 prev 58.2
EZ CPI (YoY) (Mar) 7.5% vs exp 6.6% prev 5.9%

KITCO