Manufacturing and non manufacturing US PMIs staged strong recoveries in July:


The question is, was this a reaction to a slow GDP growth rate in the first two quarters and declining order backlogs, or a genuine hike in economic growth?  Or, do we have a seasonal adjustment issue?  

The service sector profile does not look out of place given movements over the last 18 months, while manufacturing may signify a rebound from weak manufacturing growth in the first half of the year.  Neither imply a step up in growth dynamics.

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