WASHINGTON (dpa-AFX) - The dollar is posting modest gains against all of its major competitors Monday, but is little changed overall. U.S. economic data was mixed this morning, with a better than expected read on personal income, but manufacturing data proved disappointing.
Personal income in the U.S. increased by slightly more than expected in the month of June, according to a report released by the Commerce Department on Monday. The report said personal income rose by 0.4 percent in June, matching the increases seen in each of the two previous months. Economists had expected income to climb by 0.3 percent.
The Commerce Department also said personal spending edged up by 0.2 percent in June after rising by 0.7 percent in May. The modest increase matched economist estimates.
Activity in the U.S. manufacturing sector unexpectedly grew at a slower rate in the month of July, the Institute for Supply Management revealed in a report on Monday. The ISM said its purchasing managers index dipped to 52.7 in July from 53.5 in June, although a reading above 50 indicates continued growth in the manufacturing sector.
The decrease came as a surprise to economist, who had expected the manufacturing index to inch up to a reading of 53.7.
Construction spending in the U.S. increased by much less than expected in the month of June, according to a report released by the Commerce Department on Monday.
The report said construction spending inched up by 0.1 percent to an annual rate of $1.065 trillion in June from the revised May estimate of $1.064 trillion. Economists had expected spending to climb by 0.6 percent.
The dollar slipped to an early low of $1.0995 against the Euro Monday, but has since risen to around $1.0950.
The euro area manufacturing sector continued to expand in July despite deep contraction in Greece, final data from Markit Economics showed Monday. The manufacturing Purchasing Managers' Index came in at 52.4 in July, slightly above the flash estimate of 52.2, but down from June's 14-month high of 52.5.
Germany's manufacturing sector expanded more than initially estimated in July, data published by Markit showed Monday. The Markit/BME final Purchasing Managers' Index came in at 51.8 in July, above the flash score of 51.5, but down from 51.9 in June.
The French manufacturing sector shrank as initially estimated in July, final data from Markit Economics showed Monday. The Purchasing Managers' Index fell to 49.6 in July from 50.7 in June. The reading came in line with the flash estimate.
The buck rose to a high of $1.5564 against the pound sterling Monday, but has since eased back to around $1.5585.
The U.K. manufacturing sector growth improved in July but new order growth eased to a 10-month low, casting concerns over the sustainability of future momentum. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose to 51.9 in July from a 26-month low of 51.4 in June, data from Markit revealed Monday. It was forecast to rise marginally to 51.5. The greenback reached a high of Y124.271 against the Japanese Yen Monday, but has since retreated to around Y123.920.
Japan's manufacturing sector improved in July to the highest in five months, reflecting expansions in production, new orders, employment and stocks of purchases, the latest survey from Nikkei and Markit Economics showed on Monday.
The headline Nikkei manufacturing purchasing managers' index, or PMI, grew to 51.2 in July from 50.1 in June.
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