Stock markets have been scaling new heights around the world and a significant contributor to this ongoing phenomenon has been the global manufacturing resurgence. One way to better assess the momentum of this upswing is through reading of Manufacturing Purchasing Managers’ Index (PMI).
What is PMI?
PMI is essentially an economic indicator derived from monthly surveys of private sector companies. The surveys are based on major indicators such as new orders, inventory levels, production, supplier deliveries and the employment level.
A PMI of more than 50 represents expansion of the manufacturing sector when compared to the previous month. Naturally, a PMI reading under 50 represents a contraction.
US PMI
 
Source: Trading Economics

 

The United States’ manufacturing PMI appears strong, resilient, and even produced an upswing recently. It appears that the manufacturing bull is well set up for a strong run in Q3 as well.
Eurozone PMI
Source: Trading Economics

 

The …