Global Economic Analysis and News of Note
- The JP Morgan Global Purchasing Managers’ Index (PMI) fell to 50.7 in August, its lowest level since July 2013. The bank called the reading “lackluster” and noted “the rate of expansion in production volumes eased to the weakest seen in 28 months and the pace of increase in new business stayed close to recent lows.”
- The Markit PMI for the Eurozone was generally flat in August, declining only 0.1 to 52.3 in August from 52.4 July. Markit said, “August data signaled a further expansion of the Eurozone manufacturing sector, as continued growth in Germany, Italy, Spain, the Netherlands, Austria and Ireland offset the ongoing contractions in France and Greece.” Manufacturing in Germany hit a 16-month high. Meanwhile, the Markit PMI for the United Kingdom fell to 51.5 in August from 51.9 in July.
- Manufacturing PMIs in Asia were generally negative in August. The Caixan PMI for China fell to 47.3 in August from 47.8 in July, marking “the quickest deterioration in operating conditions for over six years in August.” New orders and new export orders both declined significantly in August, as did production. Readings for South Korea, Taiwan and Vietnam also fell or remained soft. Japan was one bright spot in the region: the Nikkei PMI for Japan rose to a seven-month high as employment, new orders and output indices all rose.
- As a reminder, all manufacturing PMIs are available here.