June PMI

Data Round-Up: PMI Improving Nicely; Real GDP Likely +2.5% in 16Q2

written by Michael Lewis on July 01, 2016

The PMI beat the consensus and reached its highest level since early 2015. Though the PMI’s utility as a GDP proxy has eroded since the Great Recession, today’s reading would imply just under+3% real GDP growth in 16Q2. We are tracking a +2.5% or so gain, with today’s construction data confirming payback after robust residential results in 16Q1.