The manufacturing sector in Europe remain robust

Frankfurt (Feb 1)  Manufacturing numbers have remained robust in general overnight and early in the European session. Australia is the main expectation with a dismal reading of 48.4 vs the previous reading of 54.8. This means the sector is in contraction (8 month low) but there are still pandemic issues in the nation.

PMI's in Germany and the U.K. have printed well. It has been said that supply chain bottlenecks eased, although the improvement was not evenly spread across member countries and factories still faced high inflationary pressures. The Eurozone report noted that“Eurozone manufacturers appear to be weathering the Omicron storm better than prior COVID-19 waves so far, with firms reporting the largest production and order book improvements for four months in January,”.

In the U.K. manufacturing output grew at its quickest pace in six months in January as global supply chain pressures began to ease and factories largely shrugged off a wave of cases caused by the Omicron variant of coronavirus, a survey showed on Tuesday. IHS Markit said "Although supply chain constraints continued to stymie growth, there were signs that these were past their peak, a factor contributing to a slight easing in purchase price inflation,"

Later the market will be updated on the latest from the U.S. with the ISM report due at 3 pm London time. The surveyed analysts are expecting a reading of 57.5 slightly lower than the previous number which came in at 58.7. The non-ISM reading is also due later and again analysts are expecting a decline to 55.0 from 57.7.

U.K. Manufacturing PMI (Jan) 57.3 vs exp 56.9 prev 57.9
EZ Manufacturing PMI (Jan) 58.7 vs exp 59.0 prev 58.0
German Manufacturing PMI (Jan) 59.8 vs exp 60.5 prev 57.4
Japanese Manufacturing PMI (Jan) 55.4 vs exp 54.6 prev 54.3
Indian Nikkei Markit Manufacturing PMI (Jan) 54.0 vs exp 54.6 prev 55.5
Australian AIG Manufacturing Index (Dec) 48.4 vs prev 54.8

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