Weekly Update July 2022
UK COMMENTARY
- UK manufacturing sector fell to a two-year low in June, according to purchasing managers’ index (PMI) data for the sector. S&P Global UK manufacturing PMI fell from 54.6 in May to 52.8 in June.
- The Office for National Statistics (ONS) reported that UK gross domestic product (GDP) increased 0.8% for the first quarter of 2022. This was in line with analyst expectations, but below the reading of 1.3% for the fourth quarter of 2021.
NORTH AMERICA COMMENTARY
- In the US, the Institute of Supply Management (ISM) reported that factory activity fell in June, with the PMI survey data falling to 53.0, the lowest reading since June 2020, but still in expansionary territory.
- The Labor Department reported that the US unemployment rate stood at 3.6% in May, a near 54-year low.
EUROPE COMMENTARY
- Eurozone consumer price index (CPI) inflation reached 8.6% in June, as Russia’s war in Ukraine continued to compound the cost-of-living crisis.
- Eurozone economic sentiment fell by slightly less than expected in June. Industrial sentiment improved to 7.4 points from 6.5 in May, while sentiment in the services sector improvement to 14.8 from 14.1 in May. Economists had expected both to decline.
- German retail sales increased in May by 0.6%, slightly higher than analyst forecasts of 0.5%, according to Germany’s Federal Statistics Office.
ASIA COMMENTARY
- China’s official manufacturing PMI for June showed an expansion of 50.2 over the month, as factory activity recovered following the relaxing of regional COVID-19 lockdowns.
- Japan’s PMI survey data for the manufacturing sector fell from 53.3 in May to 52.7 in June as companies anticipated rising costs and sustained material shortages would continue to hamper activity.
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We remain composed and professional and will continue our considered, measured approach to carefully navigate these challenging conditions. Financial advice is key, so please don’t hesitate to get in contact with any questions or concerns you may have.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.