(MENAFN- DailyFX) Markit PMI Talking Points:
The U.S. Markit composite PMI reading came in at 50.9, marking continued weakness in the US services and manufacturing sectors US Treasury yields continue to fall as Investors look for safety among concerning economic data and trade tensions The weak trend continues in services and manufacturing, falling from a high point last summer Markit Economics released their May Purchasing Managers Index readings Thursday for the service and manufacturing sectors. The weak data put pressure ona rising US Dollar , pushing the dollar from its daily high of 98.365 to 98.125 at the time of this article's writing.
US Treasuries yields also fell on the release of the data, as investors sought out the safety of US debt as the economy continues to show signs of stress. Consequently, the 10-year yield hit a year-to-date low of 2.3203. The move in US Treasury yields shows a contrasting appetite for US debt compared to last year. Economic data points have continued to come in mixed during 2019, with these economic fissures starting to spark investor concern.
The Flash US Composite PMI index signaled the weakest expansion in business activity since May 2016. Interestingly, in the face of continuing trade tensions with China, input prices eased in May for a third consecutive month. However, survey participants were less optimistic about output over the next 12 months with many respondents noting trade tensions as a factor for their weak views of future output.
--Written by Thomas Westwater, Intern Analyst for DailyFX.com
Contact and follow Thomas on Twitter@FxWestwater
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