Earning Revisions Outpace Manufacturing Recovery

Upward earnings revisions continue to outperform the recovery in global manufacturing, where PMI new orders data has faltered over the past few months. China has seen the most improvement on the earnings revision front, after a long period of lagging behind other regions. Input prices in manufacturing have picked up slightly in recent months but output price PMIs remain in the zone historically consistent with 2% inflation.

New Orders:

US = 50.2

China = 50.7

Eurozone = 44.3

G5 New Orders: flat at 49.2

US: 53.7, Eurozone: 51.8, UK: 55.7