Recently released PMI data for June was okay vs month ago, but strong on a broader level as it confirmed what we have been seeing.
Strong GDP growth is likely to continue.
Data highlights:
The ISM manufacturing PMI jumped +1.5pts to 60.2 (vs expectations of a fall to 58.2).
The Markit manufacturing PMI dropped -1pt to 55.4 (vs the initial flash reading of 54.6 – it’s interesting to see such an improvement).
Importantly, the trend remains the same and GDP growth is accelerating (potentially toward the 4 percent mark).
Digging deeper into the data, we saw gains in export orders and a jump in import orders. This continues to paint a bullish view of the US economy, and this should be bullish for the U.S. Dollar and bond yields… which could mean further tightening by the Fed.
Twitter:Â Â @Callum_Thomas
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
