The Q2 2011 results are mixed. Given the difficult economic background, and the special factors that reduced the number days worked in Q2, the results are positive overall. More key balances improved than worsened in Q2, in both manufacturing and services. But the results signal a weak and fragile recovery, with the economy still facing many risks.

In manufacturing, there were improvements in the balances for home deliveries, employment expectations, investment, and confidence. But the home orders balance fell, and the manufacturing export balances, though still satisfactory, declined. In services, the domestic, employment, and export delivery balances recorded modest improvements in Q2. But many service balances remain weak by historical standards. The service investment balances fell, and the confidence balances were stagnant or marginally down. The Q2 cashflow balances improved, but remained negative for both manufacturing and services, signalling continued financial strains. Price pressures are still relatively high, but fell in Q2 in both manufacturing and services.