What Does PMI Data Reveal About the Economy?
Manufacturing in the 19-nation euro area barely grew in May, damping confidence in the strength of the region’s economic recovery, according to Markit Economics. A Purchasing Managers Index slipped to 51.5 from 51.7, the London-based company said on Wednesday. The reading is in line with a May 23 estimate and just above the 50 threshold that divides expansion from contraction. China’s official factory gauge for a third month remained above the dividing line that signals improving conditions, adding to recent evidence of stabilization in the world’s second-largest economy. The manufacturing purchasing managers index stood at 50.1 in May, the nation’s statistics agency said Wednesday, matching April’s level and compared with a median estimate of 50 in a Bloomberg survey of economists. London & Capital Investment Director Ashok Shah discusses with Bloomberg's Mark Barton on "The Pulse."