Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Week Ahead Economic Preview: Week Of 6 July 2020

Published 03/07/2020, 06:41
Updated 05/03/2021, 15:50

After manufacturing PMIs showed encouraging signs of factories emerging from lockdowns (see page 9), further clues as to economic recovery paths will be sought from various key data releases. These include the global PMI, US non-manufacturing data, eurozone industrial output and retail sales, plus detailed global sector PMIs. The latter have provided unique insights into which companies have seen the strongest downturns during the pandemic, with tourism, recreation and transport so far suffering the most. IHS Markit also updates its business outlook survey, which looks at business expectations for the year ahead across its PMI panels around the world. Central bank action comes from Australia and Malaysia.

In the US, the focus shifts to the services and non-manufacturing PMIs via IHS Markit and ISM respectively. With the flash PMI for the former having already shown signs of improvement in June, and ISM's factory gauge having beaten expectations, markets will be looking for some positive numbers. Jobless claims will also be in the limelight amid worries about the economic impact of lockdowns being reintroduced. Vast swathes of the US have re-instigated lockdowns as COVID-19 infection rates hit new record highs (page 3).

Retail sales and industrial production for the eurozone will be eyed to gauge the extent of the rebound from April's lockdowns. PMI data have already hinted at strong monthly gains in the official gauges, and early indicators such as German and French retail sales have bounced higher. Construction PMI numbers will also give additional clues as to building activity across Europe's largest economies in June (page 4). See our special 'Eurozone: Beyond the Bounce' report (page 6).

In Asia, central bank meetings in Australia and Malaysia will be keenly watched for policymakers' latest assessments of the economic outlook. Both have unleashed stimulus to fight pandemic-fuelled downturns, but the latest economic data are showing improvements which could reduce appetite for further measures just yet. China's credit and money supply data will also be important to watch (page 5).

"Disclaimer: The intellectual property rights to these data provided herein are owned by or licensed to Markit Economics Limited. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon.

In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Purchasing Managers' Index™ and PMI™ are either registered trademarks of Markit Economics Limited or licensed to Markit Economics Limited. Markit is a registered trade mark of Markit Group Limited."

Original Post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.