We had some big PMI reports come out overnight so let’s summarize the data (via Markit):
USA PMI modestly expanding at 51.5 – Key points:
- Average PMI reading for third quarter as a whole lowest since Q3 2009
- Slowest rise in output for three years in September
- Modest increase in employment
- Input price inflation at four-month high, but still much weaker than at start of 2012
Eurozone PMI still deep in contraction at 45.9. Key points:
- Flash Eurozone PMI Composite Output Index at 45.9 (46.3 in August). 39-month low.
- Flash Eurozone Services PMI Activity Index at 46.0 (47.2 in August). 38-month low.
- Flash Eurozone Manufacturing PMI at 46.0 (45.1 in August). Six-month high.
- Flash Eurozone Manufacturing PMI Output Indexat 45.5 (44.4 in August). Five-month high.
- Flash Germany Composite Output Index at 49.7 (47.0 in August), 5-month high.
- Flash France Composite Output Index falls to 44.1 (48.0 in August), 41-month low.
China PMI was flat at 47.8, still contracting. Key points:
- Flash China Manufacturing PMI at 47.8 (47.6 in August). 2-month high.
- Flash China Manufacturing Output Index at 47.0 (48.2 in August). 10-month low.
It’s a pretty mixed bag overall. The data out of Europe is still ugly and Chine is still modestly contracting. The USA looks like the best house in a bad neighborhood.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.