What can we expected from Flash Manufacturing PMIs of China, U.S. and Germany.
Let start with China. In this month China has shown deterioration in economic health. On 1st Feb Manufacturing PMI fell little to 50.5 from 51. Industrial production slowed down to 9.7% in January. Central bank is likely to tighten monetary policy to support banks, reduce extravagant lending and control debt. Overall this may lead to deceleration in manufacturing activities.
In U.S., Industrial Production fell to -0.3% from December 0.3%. The index fell to nine months low on slowing economic growth. Factory orders for last month fell to -1.5% from previous 1.5% that was also five months low. In the beginning of the month ISM Manufacturing PMI had shown negative result. The index fell to 51.3 from earlier 57.0. Empire State Manufacturing Index also fell by 8.5 points. Dampening leading indicators of manufacturing industry may bring negative result of Flash and Philly Fed Manufacturing Index.
German Flash Manufacturing PMI is expected to fall a little. German Factory orders fell to -0.5%, industrial production contracted and lose momentum gained in December. The index dropped to -0.6% from earlier 2.4%. Weak global economic growth may retard manufacturing activity at Germany.
Volatile emerging markets and unsustainable indications from U.S. economy could affect global economy. Falling metal prices is a sign of contraction in manufacturing industry. We are expecting that this month Flash Manufacturing PMIs of major economies will come negative.