Manufacturing and service sector PMIs show the usual story: Eurozone going down and US holding up

Manufacturing and service sector figures continue to show weakening economy in December, though the decline is not accelerating much anymore. Global figures came in positive and the same holds true for US, but the Eurozone is continuing its decline although the pace slowed down.

The next chart gives an overview of what’s happening. The upper right corner shows accelerating expansion while the lower left corner shows accelerating decline.

Taking a more detailed look at US, the manufacturing sector figure was 53.9 with the sub-figures supporting somewhat positive picture for the economy. Service sector posted a figure of 52.6, that also being an improvement from last month although the underlying figures are a bit worse than with the manufacturing. New orders are showing healthy increases, but order backlogs are clearly contracting.

And next up the manufacturing and service index values for 2011. The indexes did not turn negative towards the end of the year despite the clear deterioration. US figures have been somewhat positive for the last couple of months across the board and while I expected US to be in or very close to a recession by the end of the year, I do not believe in the US decoupling from the recession in Europe and slowdown in China. We will know more tomorrow when the employment statistics are released.


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