Sallie Currency Thoughts | nonstop wide interest blog

Widest U.S. Manufacturing Advantage Versus Euroland in Two Years

The Institute of Supply Management’s U.S. manufacturing purchasing managers index jumped 1.7 points in February to a 28-month high of 57.7. This faster improvement of conditions was led by new orders, up 4.7 points, and production, up 1.5 points. Inflationary pressured settled back a point but remained well above the 50 level that separates expansion from contraction and thus further solidifies the chances that the Fed will raise rates this month.

Euroland’s manufacturing purchasing managers index only went up 0.2 points by contrast to a reading of 55.4, according to Markit Economics. The slight quickening of expansion was restrained by declines of 1.7, 1.4 and 0.8 points in the Irish, French and Spanish components. Seven of the eight individual common currency members with individual PMI surveys had scores above 50, Greece being the sole exception.