August 2016 cable raw materials (rubber) monthly report

1.
Macroeconomic news

1.
Data released by the American Institute for Supply Management (ISM) showed that the ISM non-manufacturing index in the United States was 55.
5 in July, less than the expected 55.
9 and lower than the 56.
5
in June.
The ISM Non-Manufacturing Index measures the state of the U.
S.
non-manufacturing sector
.
Although non-manufacturing accounts for a major part of the overall economy, it has limited
influence on the market because non-manufacturing data is cyclical and predictable.
However, given its large share of the CPI, it can reveal the inside picture of economic growth and inflationary pressures
.

2.
The Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing announced on August 1 that China's manufacturing purchasing managers' index (PMI) in July was 49.
9%, down 0.
1 percentage points
from the previous month.
This is the first time since March that the manufacturing PMI has fallen below the boom-dry line
.
According to expert analysis, the current traditional manufacturing industry is in the process of capacity reduction, the market demand is weak, and floods in some areas have affected the production and logistics and transportation
of enterprises.

3.
Data released by the Cabinet Office yesterday showed that due to the decline in exports due to the appreciation of the yen, coupled with the decline in corporate equipment investment, personal consumption remained sluggish, and Japan's real gross domestic product (GDP) in the second quarter of 2016 grew at an annual rate of 0.
2%, lower than market expectations
.
Lower overseas demand pushed down GDP growth by 0.
3 percent, while domestic demand contributed 0.
3 percent of GDP
.
In addition, Japanese corporate investment spending has fallen for two consecutive quarters, the first such
since the consumption tax hike in 2014.
Despite the rapid expansion of the Bank of Japan's balance sheet, the investment of Japanese companies has remained unchanged
for almost three years.

4.
The latest data released by the data compilation agency Markit on the 23rd showed that the preliminary composite PMI of the euro area in August was 53.
3, better than the market expectation of 53.
1, the highest level in 7 months; the preliminary value of the manufacturing PMI was 51.
8, less than the market expectation of 52, the lowest level in 3 months; the preliminary PMI of the service industry was 53.
1, better than the market expectation of 52.
8, the highest level
in 8 months.