The US manufacturing sector grew at a moderately faster pace in July, according to today’s initial estimate of Markit Economics purchasing managers index (PMI). “The U.S. manufacturing sector picked up momentum again in July, with output, order books and employment all growing,” says Markit’s chief economist, Chris Williamson, in a press release (pdf). “The goods-producing sector acts as a bellwether of the wider economy, and the upturn in July therefore bodes well for the pace of GDP growth to have picked up again in the third quarter after a likely easing in the second quarter.”
Daily Archives: July 24, 2013
Macro-Markets Risk Index | 7.24.2013
US economic conditions continue to stabilize in July after a sharp but so far brief deterioration in June, according to a markets-based profile of the macro trend. The deterioration that persisted through most of last month for this index has faded in recent weeks, giving way to a comparatively stable trend. Even after the sharp fall in the Macro-Markets Risk Index (MMRI) in June, this benchmark closed yesterday (July 23) at 10.1%–a level that suggests that business cycle risk remains low. Although MMRI is still near its lowest value in a year, it remains well above the danger zone of 0%. If MMRI falls under 0%, that would be a sign that recession risk is elevated. By comparison, readings above 0% imply economic growth.