Weekly Economic Calendar, from Action Economics, Businessweek
I have to sincerely apologize to my readers for upload this calendar late, as i struggle to set up my desktop and online as well. I had started a new venture today and it going to take out some of my precious time. However, i am always very committed as i do. My goal is to update at least 1 or 2 post each week.
Last 8 months Performance of PMI Index
July ISM Index Component
ISM Manufacturing index for July is 48.9% and beat the forecast of 45.8%. Dow Jones immediately trading at 1% upward range.
Summary of Report as below:
PMI
Manufacturing contracted at a slower rate in July as the PMI registered 48.9 percent, which is 4.1 percentage points higher than the 44.8 percent reported in June. This is the 18th consecutive month of contraction in the manufacturing sector. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
A PMI in excess of 41.2 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the PMI indicates growth for the third consecutive month in the overall economy, and continuing contraction in the manufacturing sector. Ore stated, "The past relationship between the PMI and the overall economy indicates that the average PMI for January through July (40.6 percent) corresponds to a 0.2 percent decrease in real gross domestic product (GDP). However, if the PMI for July (48.9 percent) is annualized, it corresponds to a 2.4 percent increase in real GDP annually."
Well, the 48.9 index is still below 50, which indicate expansion for manufacturing, but it certainly not far from it now.
The main dish for this week is ISM Manufacturing index and July Employment report (Wed, 8.15am ET). ISM manufacturing has given the market something to cherish on and continue to march towards 10000 for Dow Jones. Employment figure is a lagging indicator and it always recover when; only the business confidence is back. In this case, my opinion is Traders will be eager to bet along the positive upside of Employment figure. Therefore, i foresee that market will continue trend up for time being.
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