U.S. Construction Spending Slumps Much Less Than Expected In April

Trading 01 juin 2020 Commentaire »

While a report released by the Commerce Department on Monday showed a sharp pullback in U.S. construction spending in the month of April, the decrease was much smaller than economists had expected.

The Commerce Department said construction spending tumbled by 2.9 percent to an annual rate of $1.346 trillion in April after inching up by less than a tenth of a percent to a revised $1.387 trillion in March.

Economists had expected construction spending to show an even more substantial 6.5 percent nosedive following the 0.9 percent increase originally reported for the previous month.

The steep drop in total construction spending reflected significant decreases in spending on both private and public construction.

Spending on private construction plunged by 3.0 percent to an annual rate of $1.004 trillion, as spending on residential construction plummeted by 4.5 percent and spending on non-residential construction slumped by 1.3 percent.

The report said spending on public construction also tumbled by 2.5 percent to an annual rate of $342.1 billion, with spending on educational construction sinking by 2.3 percent and spending on highway construction plunging by 5.2 percent.

Despite the monthly decrease, the Commerce Department said total construction spending in April was up by 3.0 percent compared to the same month a year ago.


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U.S. Manufacturing Index Rebounds Modestly In May

Trading 01 juin 2020 Commentaire »

Manufacturing activity in the U.S. contracted at a slightly slower rate in the month of May, according to a report released by the Institute for Supply Management on Monday.

The ISM said its purchasing managers index rose to 43.1 in May from 41.5 in April, coming in just below economist estimates for a reading of 43.6.

While the index rebounded from its lowest level since April of 2009, a reading below 50 still indicates a contraction in manufacturing activity.

Nonetheless, Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, said the latest figure indicates expansion in the overall economy after April's contraction.

The modest rebound by the headline index came as the new orders index jumped to 31.8 in May from 27.1 in April and the production index surged up to 33.2 from 27.5.

The employment index also spiked to 32.1 in May from 27.5 in April, although the reading below 50 indicates the tenth consecutive month of contraction in employment in the manufacturing sector.

On the inflation front, the prices index rebounded to 40.8 in May from 35.3 in April, indicating prices decreased at a slower rate.

"May appears to be a transition month, as many panelists and their suppliers returned to work late in the month," Fiore said.

He added, "However, demand remains uncertain, likely impacting inventories, customer inventories, employment, imports and backlog of orders."

The ISM is scheduled to release a separate report on activity in the service sector in the month of May on Wednesday. The non-manufacturing index is expected to rise to 44.0 in May from 41.8 in April.


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Dollar Little Changed After ISM Manufacturing Index

Trading 01 juin 2020 Commentaire »

U.S. construction spending for April and ISM manufacturing index for May have been released at 10:00 am ET Monday. The greenback changed little against its major rivals after the data.

The greenback was trading at 107.69 against the yen, 1.1122 against the euro, 0.9615 against the franc and 1.2422 against the pound around 10:05 am ET.


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*ISM U.S. Manufacturing Index Rises To 43.1 In May

Trading 01 juin 2020 Commentaire »

ISM U.S. Manufacturing Index Rises To 43.1 In May


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Dollar Mixed Ahead Of ISM Manufacturing Index

Trading 01 juin 2020 Commentaire »

U.S. construction spending for April and ISM manufacturing index for May are set for release at 10:00 am ET Monday. Ahead of the data, the greenback traded mixed against its major rivals. While the greenback rose against the franc and the euro, it held steady against the pound and the yen.

The greenback was worth 107.69 against the yen, 1.1122 against the euro, 0.9616 against the franc and 1.2421 against the pound as of 9:55 am ET.


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*U.S. Construction Spending Slumps 2.9% In April

Trading 01 juin 2020 Commentaire »

U.S. Construction Spending Slumps 2.9% In April


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Greece Factory Activity Falls At Slower Pace

Trading 01 juin 2020 Commentaire »

Greece's manufacturing activity logged a slower fall in May as the economy began to reopen following the loosening of lockdowns amid the coronavirus, or Covid-19, pandemic, survey results from IHS Markit showed Monday.

The manufacturing Purchasing Managers' Index climbed to 41.1 in May from 29.5 in April. A score below 50 indicates contraction.

Although the index advanced from the April level, the survey signaled the second-sharpest deterioration in manufacturing operating conditions since August 2015. The softer fall was partly linked to a slower decrease in production. At the same time, weak demand led to a steep drop in new orders.

Reflecting lower new orders, Greek goods producers registered a marked drop in employment in May.

Expectations of a prolonged recovery and difficulties accessing credit during the pandemic weighed on confidence.

Input prices decreased at the sharpest pace since February 2016. Firms also reduced their output charges at the second-fastest pace for seven years amid efforts to boost sales.


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Portugal Industrial Production Falls For Second Month

Trading 01 juin 2020 Commentaire »

Portugal's industrial production declined for the second straight month in April, figures from Statistics Portugal showed on Monday.

Industrial production fell 25.9 percent year-on-year in April, faster than the 6.8 percent decrease in March. Output fell for the second month in a row.

Manufacturing output declined 29.0 percent on a yearly basis in April, following a 10.2 percent drop in the previous month.

Energy output declined 12.0 percent annually in April. Production of intermediate and investment goods decreased by 21.0 percent and 43.7 percent, respectively.

On a monthly basis, industrial production fell 18.2 percent in April, following an 8.0 percent decline in the preceding month.


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Italy's Manufacturing Downturn Eases In May

Trading 01 juin 2020 Commentaire »

Italy's manufacturing activity downturn eased in May as coronavirus, or Covid-19, restrictions loosened, survey data from IHS Markit showed Monday.

The manufacturing Purchasing Managers' Index advanced notably to 45.4 in May from 31.1 in April. The score was also above economists' forecast of 37.1.

However, the survey signaled a twentieth consecutive monthly deterioration in the health of the manufacturing sector.

Driving the latest contractions were further falls in both output and new orders. Although the pace of decrease in order book volume eased from the record fall in April, the contraction was among the fastest since mid-2009.

Meanwhile, firms continued to cut staff numbers in May, with the rate of job shedding the second quickest since mid-2009.

Driven by falling oil and raw material costs, cost burdens decreased further in May. Firms continued to discount selling prices to attract customers.

Finally, Italian goods producers remained confident with regards to output over the coming 12 months in May.

Although latest figures highlighted a softer rate of deterioration, conditions across the sector remain extremely challenging as firms struggle to revive demand both domestically and abroad, Lewis Cooper, an economist at IHS Markit said. A recovery from such a colossal downturn will inevitably take some time.


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Polish Zloty Climbs To 2-1/2-month High Against U.S. Dollar

Trading 01 juin 2020 Commentaire »

The Polish Zloty firmed against the U.S. dollar in the European session on Monday, as risk sentiment improved after U.S. President Donald Trump did not take new steps against China, de-escalating the trade war.

Survey data from IHS Markit showed that Poland's manufacturing sector contracted at the second sharpest pace since January 2009, due to ongoing lockdown restrictions designed to contain the spread of coronavirus, or Covid-19, pandemic.

The manufacturing Purchasing Managers' Index, or PMI, rose to 40.6 in May from a record low of 31.9 in April.

The Polish Zloty rose to 3.9624 against the greenback, its strongest since March 16. If the currency rises further, 3.8 is seen as its next resistance level.


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