US: Disappointing PMIs reading – Deutsche Bank

According to analysts at Deutsche Bank, US PMIs were a sea of disappointment yesterday with the flash manufacturing reading falling -2pts to 50.6 (vs. 52.6 expected) and hit the lowest in just under 10 years. 

Key Quotes

“The services reading fell -2.1pts to 50.9 (vs. 53.5 expected) – the lowest in over 3 years while the composite also hit 50.9 (vs. 53.0 last month). So 2009 levels for the manufacturing reading and it didn’t go under the radar that the new orders component went below 50 for the first time since the crisis. That component has led the headline index by around 5 months, suggesting the slide is likely to continue through the summer.”

“The associated commentary did mention trade but not in any great detail which perhaps also raises the risk of further downside. The most obvious mention was that “reduced confidence was commonly attributed to hesitation among clients and increased uncertainty, which were both often linked to global trade tensions”. Interestingly the difference between the US and Eurozone manufacturing PMI is now just 2.9pts and the lowest for the year.”