Lock down easing is happening all over the globe as of now. In part, due to the pressure to reopen the economies and release the social anxiety on the individuals.
Even so in some countries the scientific community is showing concern regarding the speed of the easing. Considering that it may harm the gains of the lockdown and make the second wave bigger than it could/should be.
Therefore, let us have a look to how the economy is moving, today was showed the PMI values of some important economies for May, whereas PMI stands for:
a) Purchasing Managers’ Index:
a. Is an index of the prevailing direction of economic trends in the manufacturing and services sectors.
b. The purpose is to provide information about current and future business conditions to company decision makers, analysts, and investors.
c. When the PMI is below 50.0 this indicates that the manufacturing economy is declining and a value above 50.0 indicates an expansion of the manufacturing economy.
As of today, the countries that presented their values, we could summarize that:
a. Australia, China, Spain, Italy and France were above expectations.
b. Japan, UK and USA in line with them.
c. German and the EU area under expectations.
Looking to all the numbers we can state that an unexpected number of countries had their results above or in line with the expectations which can be seen has a good sign. Even so the comment is simply taking in consideration two variables:
a. The final numbers
b. And the expectations.
In sum the markets gain as economies reopen and keeps expecting the possibility of a V-shape recovery. Also as is know the Central Banks are doing whatever it takes to support the bumps of the financial system aiming to relaunch it as soon as possible.
Which means that even there are some good signs coming over the situation is still fragile and tense once we see the expectations of a V-shape, in other words just the future will tell us how things will evolve.
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