Canadian factory activity resumes expansion in July as economy reopens - Reuters News

TORONTO, Aug 4 (Reuters) - Canadian manufacturing activity expanded in July for the first time in five months as reopening of more parts of the domestic economy boosted output and new orders, data showed on Tuesday.

The IHS Markit Canada Manufacturing Purchasing Managers' index (PMI) rose to a seasonally adjusted 52.9 in July from 47.8 in June, extending its recovery from 33.0 in April when businesses were closed to help contain the coronavirus pandemic.

It was the first time since February that the index was above the 50 threshold, indicating expansion in the sector, and the highest reading since January 2019.

"July data highlights a partial rebound in the Canadian manufacturing sector after the steep downturn seen during the second quarter of 2020," said Tim Moore, economics director at IHS Markit, in a statement.

The output index climbed to its highest level since September 2018 at 53.8 from 45.5 in June and the new orders index was up at 51.7 from 45.5, but the measure of export sales remained in contraction, rising to 47.8 from 43.6.

Canada sends about 75% of its exports to the United States, where coronavirus infections have been rising in recent weeks.

"Reports from survey respondents suggested that concerns about the global economic outlook and a second wave of the pandemic had curtailed growth projections for some manufacturers in the latest survey period," Moore said.

The employment index rose to 50.9 from 44.8 in June. Canada's jobs report for July is due on Friday.

U.S. factory orders beat expectations in June - Reuters News

WASHINGTON, Aug 4 (Reuters) - New orders for U.S.-made goods increased more than expected in June, suggesting the manufacturing sector was regaining its footing though rising COVID-19 cases threaten the tentative recovery.

The Commerce Department said on Tuesday factory orders increased 6.2% after rebounding 7.7% in May. Still, orders remained below their February level. Economists polled by Reuters had forecast factory orders advancing 5.0% in June.

Euro zone producer prices return to rise month-on-month, beat expectations - Reuters News

BRUSSELS, Aug 4 (Reuters) - Euro zone producer prices rose in June on a monthly basis slightly more than expected, ending their falling trend started in February when the bloc experienced its first COVID-19 outbreaks, official estimates showed on Tuesday.

Prices at factory gates in the 19-country currency bloc increased in June by 0.7% month-on-month, the European Union's statistics office Eurostat said.

The reading beat forecasts from economists polled by Reuters of a 0.5% rise, and was the first increase after prices had fallen for four consecutive months.

It was driven by a 3.1% rise in energy prices. Otherwise, producer prices would have been flat on the month.

On the year, producer prices fell in June by 3.7%, less than the 3.9% drop expected by economists, and down from the 5.0% decline posted in May.

Producer prices are a key factor shaping consumer inflation, as changes in prices at factory gates largely translate into the final cost for consumers.

Euro zone annual consumer inflation ticked up by 0.4% in July after a 0.3% rise in June.