PMI Manufacturing Strength Looks Subdued

The PMI data are indicative of overall growth, but there is still some weakness here. This pickup is rather weak when you consider that June’s reading was shown to be a 20-month low. Output and new business volumes expanded at faster rates in July, but job creation eased to its weakest since April.

Economists will view this as comfortably above the 50.0 breakeven (above is growth, under is contraction), but they also will notice that it is weaker than the post-crisis average of 54.3.

The commentary from members covered weak exports, economic uncertainty, potential weakness in the coming months, a strong dollar, disappointing order growth, weak demand and lower import costs as competition.

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