Australia managed to outperform economies in North America and Europe in its most recent reports. Figures for the Manufacturing and Services PMI came in at 56.1 points and 54.9 points, respectively. Both figures represent an increase from their prior results of 54.2 points and 53.7 points. The above 50 points results also suggest that Australia’s economy continues to expand despite the resurgence of COVID-19 globally. The growth in the manufacturing and services industry also supported the retails sales report from Thursday, November 19, of 1.6%. Meanwhile, the European Union and its member states are expected to post disappointing figures for Composite, Manufacturing, and Services PMI reports today, November 23. As for the bloc, the manufacturing sector is expected to expand by 53.1 points. Despite the above 50 points forecast, this is lower than October’s 54.8 points result.
The EU’s economic powerhouses, Germany and France, will lead the Eurozone’s fallout following worse-than-expected results for these countries’ PMI reports today, November 23. The purchasing managers index shows trends in the manufacturing and services sectors. As for Germany, the Composite and Manufacturing managed to post above 50 points results at 50.4 points and 56.5 points, respectively. However, expansion on the above-mentioned reports were slower compared to October’s 55.0 points and 58.2 points. Meanwhile, the services sector took hit the most as analysts are anticipating the report to contract or post below 50 points figure. Most analysts are looking for 46.3 points result for the Services PMI. However, analysts’ expectations for France’s reports are bleak. Only the Manufacturing PMI is expected to thrive at 50.1 points while Markit Composite and Services PMI’s expectations were 34.0 points and 37.7 points, respectively.
A higher stimulus package should be expected as the numbers of the initial jobless claims continue to rise. On Thursday, November 19, the weekly report for the number of individuals filing for unemployment benefits jumped to 742,000 compared to the previous week’s result of 711,000. The reason or the sudden spike in claimants was the rising COVID-19 cases across the globe. The resurgence of the coronavirus pandemic could also threaten a second lockdown in the US just like what happened in Germany. As of writing, the US had 12.3 million cases. On Friday, November 20, America recorded its highest single-day increase in COVID-19 infections at 198,585. Japan, on the other hand, reaches its all-time high on Sunday, November 22, with 2,514 new cases. However, this was nothing compared to the US. The country’s Manufacturing and Services PMI also went down but not as drastic as what was expected in Europe.
The New Zealand dollar’s rally is about to come to an end with the positive improvement in Canada’s most recent reports. ADP Nonfarm Payrolls reported a loss of 79,500 jobs in last Thursday’s report, November 19. This was the second-lowest recorded jobs creation since the pandemic began in March. The top spot for jobs creation during the pandemic was the positive 208,000 jobs in July’s report. Meanwhile, the lowest goes to the month prior to the positive job creation. The figure for May’s report was 2,361,7000 lost jobs. Canada also published its retail sales report last week. The 1.1% result in September represents the highest increase in the said report for the third quarter of the fiscal year. New Zealand also managed to pull positive data for its retail sales. For the whole third quarter, retail sales jumped by 28.0% against Q2’s -14.6% result. However, credit card spending was still in the negative territory at -6.3%.