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ECONOMICS COMMENTARY
Feb 19, 2013
Using PMI data to analyse auto industry metal demand
PMI data from Markit can be used to gain an insight into the auto sector's demand for raw materials such as metals and its relative performance to other metal-intensive manufacturers. For example, January data signalled a welcome easing in the pace of decline of new orders received by the Automobiles & Parts sector in Europe to the slowest for almost a year. Nevertheless, the fall was steeper than that registered by steel-users generally across the region, continuing a trend that has been evident over the past 16 months. This ongoing, steeper-than-average, decline suggests the European car industry's demand for steel is likely to remain subdued for some time to come.
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