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November 10, 2014

Global Economic Analysis and News of Note

  • The JP Morgan global purchasing manager’s index (PMI) remained unchanged at 52.2 from September to October. JP Morgan said, “Growth was led by North America, with the U.S., Canada and Mexico reporting strong improvements in operating performance. Japan also posted a solid expansion. The eurozone, China and Russia all remained near-stagnation, but the UK regained some momentum.” A reminder that you can find all PMI readings on the Markit Economics website.  
  • As JP Morgan’s report indicated, the manufacturing sectors in most Asian countries faltered last month. Japan was the one bright spot. The Markit PMI for Japan increased to 52.4 in October from 51.7 in September as new orders improved. The HSBC PMI for China increased slightly to 50.4 in October from 50.2 in September even though output and new orders were each at a five-month low and employment also weakened. Readings for South KoreaTaiwan and Vietnam declined in October. HSBC’s reading for India did improve, rising to 51.6 in October from 51.0 in September as output and new orders improved and employment stabilized.
  • The manufacturing sector in the Eurozone improved slightly in October. The Markit Eurzone PMI rose to 50.6 in October from 50.3 in September as the manufacturing sectors in Germany, Ireland and the Netherlands all strengthened. The readings for several countries, including France, remained below 50 in October, showing continued contraction in those countries.