U.S. Manufacturing Expands at Slower Pace than Expected in July
The Institute for Supply Management’s manufacturing purchasing managers index (PMI) fell from 53.5 in June to 52.7 in July. While a reading above 50 indicates that the manufacturing industry is generally expanding, this drop over the past month indicates tepid growth at best in the sector. The employment index also decreased in July, from 55.5 in June to 52.7. On a positive note, the new orders index increased to 56.5 last month, up slightly from 56 in June. To learn more, visit here.
Greek Manufacturing Output Plummets to Lowest Ever Recorded
The Eurozone PMI survey revealed a collapse in Greece’s output, with July’s numbers plummeting to 30.2, the lowest level recorded in the 16-year history of the survey. The cause of the decline was based on uncertainty over the country’s future relationship with the Eurozone, as a reduction in new orders and inability to acquire necessary inputs due to bank closures and capital restrictions hampered normal business activity. The struggles in Greece had little impact on the rest of the Eurozone, as Italian factories had their best month in more than four years. To learn more, visit here.
House Committee on Financial Services Passes Bill to Fix CTU
Last week, the House Committee on Financial Services unanimously approved bill H.R. 1317 to fix a language glitch in the Dodd-Frank Act. Currently, the Dodd-Frank Act requires certain end-users that employ a centralized treasury unit (CTU) to clear their over-the-counter derivatives transactions, even though they are supposed to be exempt. A workaround was in place by way of a “no-action” letter, but manufacturers are not able to rely on the letter with legal certainty. The bill approved by the committee would provide this certainty to manufacturers. Next, the bill will move to the House of Representatives for consideration. To learn more, visit here.