My bookmarks

Pins are saved using cookies. Deleting them from your browser will delete your preferences.


U.S. manufacturing sector remains dynamic while services disappoint

08 August 2017

As usual, we have a heavy set of US data during the first week of the month :

  • ISM advanced indicators, which gives short term information about US economy. Manufacturing sector remains dynamic (56.3, close to the highest level), while services disappoint at 53.9. We note as well that price component is moving higher, which bodes well for future inflation prints. These decent pieces of data were not enough to break the relentless move lower in USD and US bond yields until Thursday
  • Today, employment report was out and came as a positive surprise : payrolls are high, and average hourly earnings slightly better than expected. Shortly thereafter, Gary Cohn, Trump’s administration man on economic issues, said they were working on a plan to reduce corporate taxes and boost cash repatriation. These events broke the trend and the dollar ends the week close to its beginning level.

This data strengthens our view that the American economy is in good shape. We continue to think that markets do not anticipate enough Fed hikes.

We note as well the sharp move higher in Euro inflation breakevens, helped by the rise of Brent.

More about:

The information and material provided do not, by any means, represent advice, offers, solicitations or recommendations for investing in specific investments. All statements reflect the opinions of their authors at their publication date and do not constitute a contractual commitment on behalf of the management company. These assessments are subject to change without notice, within the prospectus’ limitations, which is the only legally binding document. La Française Group declines liability in any form for any direct or indirect damage resulting from the use of this publication or the information that it contains. This publication may not be reproduced in full or in part, disseminated or distributed to any third party without the prior written consent of La Française Group.  
La Française Allocation is a French UCITS in regards to the 2009/65/CE Directive. The Fund received AMF authorization on July 15th 2003 and was launched on July 31st 2003. The strategy changed as of July 19th 2012. Management company : La Française Asset Management – Paris – approved by the “Autorité des Marchés Financiers” under N GP97076 on July 1st, 1997.

For more information regarding the French regulatory authority - Autorité des Marchés Financiers (AMF) – please visit

La Française Group provides access to the expertise of a number of asset management companies around the world. To provide you with the most relevant information, we have developed an interface to present the full range of products available for your investor profile and country of residence.

Present yourself


Your country of residence

Your language

Your profile

By continuing browsing on this website, you accept the use of cookies and other tracing devices s as to allow you to receive information suited to your profile, facilitate information sharing on social networks, guarantee the best browsing experience possible and to create statistics. To find out more, we invite you to consult our Privacy and Cookies policy. Find out more.