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Opinion

June 2011 Manufacturing PMI Down to 55.3

The HSBC Markit June Manufacturing Purchasing Managers Index (PMI) shows some level of deceleration in growth. It’s fallen to 55.3 from last month’s 57.6, to a nine-month low.

 June Manufacturing PMI

Above 50 is expansion (growth) and below 50 is contraction. This is a monthly change, seasonally adjusted.

Last month’s PMI was kinda sorta slowing but the slower piece was the Services PMI (June data releasing in two more days). The manufacturing PMI has finally gone a little bit lower..

I don’t know how much we’ll see actual economic data follow up. PMIs are only interesting in that they tell you how much more fuel we’re putting into the system. There’s a long way that momentum can take you anyhow. The commentary is:

These numbers confirm that tight capacity and monetary tightening is constraining growth. However, inflation pressures are still firmly in place, calling for further policy rate hikes to anchor inflation expectations."

Ooh. Fun, more rate hikes.