Global Electronics Outlook: More Positive Signs, but Recovery Timeline Still Uncertain
June “flash” PMIs were just released for select counties (chart 1). With the exception of Japan all PMIs rebounded although many still remained in contraction territory (PMI<50):Markit Economics’ USA PMI rose sharply from 39.8 to 49.6 (chart 2).Eurozone PMI also rebounded from 39.4 to 46.9 – indicating manufacturing contraction but at a slower rate (chart 3); according to Markit Economics (chart 4), “Eurozone economic downturn eased markedly for second successive month in June as lockdowns to prevent spread of COVID-19 were further relaxed. Manufacturing output continued to drop due to declining orders, but June saw continued strong improvement in business expectations for the year ahead. Persistent closure of non-essential business, hotels, restaurants, travel and tourism and other consumer-facing sectors, continued to be widely reported”Germany’s PMI improved to 44.6 indicating slower contraction (chart 5) and France moved back into manufacturing expansion at 52.1 (chart 6)Japan slipped further into contraction (chart 7)
