The analyses of July’s economic data pointed out that the US business conditions improve, especially in the manufacturing sector. The increase to 53.8 of the seasonally adjusted Markit Flash Manufacturing PMI comes after June’s 20-month low at 53.6. This level is above the neutral 50.0 threshold, but under the post-crisis average of 54.3. July’s improved results in the US economy also reflect in the rise of output and new businesses.
If the overall picture of USA (from an economical point of view) is rather pink, there still are some black spots. One of them is the index of new home purchases (revised down in June) which, according to some background voices, will keep its downward momentum. Also, sales went down 6.8% to an annualized pace at 482k, lowest since November last year and gloomier than every scenario of Bloomberg’s analyses, according to the Commerce Department.
Although having one of the strongest rates of expansion in the last 4 years, Eurozone’s economic growth has marginally lowered the pace in July. The Markit Eurozone PMI shrank from 54.2 in June to 53.7, remaining over the average of the first 6 months on the year. Despite the setback, the rate was the 6th highest recorded since 2011. In the manufacturing and services sector, the growth hike reposed but the trend is still robust.
Dissecting the EU, the private companies from Germany reported an output augmentation for July consequent on the seasonally adjusted Markit Flash Composite Output index. The value of the index remained over the 50.0 threshold, keeping its path at 53.4 but settling under June’s 53.7. This indicates a slight slowdown in the economic expansion. The service sector remains stronger than the manufacturing sector. France, on the other hand is on its three month decreasing PMI. The Markit Flash Composite Output lowered to 51.5, under a 46-month high on 53.5 last month.
Looking at the gold futures, we can see that it settled with losses on Friday recording the lowest level since February 5 years ago. One of the main reasons that gold encountered this drop is the strengthening of the US dollar. Another reason can be the expectation of a rate hike announced by the Federal Reserve later this year. The setback is of 6.8% month to date. The august futures contract went down by 0.8% ($8.60) and settled at $1,805.50 per ounce in the Comex session. This fifth-week loss also marked the lowest settle of a “most-active” contract since February 5 years ago.
