Global Economic Analysis and News of Note
- The JP Morgan global purchasing managers’ index (PMI) increased to 51.4 in October from 50.7 in September. Indicators for output, new orders and employment all rose, but the bank said, “[T]he ongoing slump in emerging Asian markets continued to offset growth in many of the major developed industrial nations.”
- The Markit PMI for the Eurozone rose to 52.3 in October from 52.0 in September as readings for output, new orders and employment all strengthened. Meanwhile, the PMI for the United Kingdom hit a 16-month high.
- Asian readings, meanwhile, were mixed. The Caixin PMI for China rose to 48.3 in October from 47.2 in September. Despite the slight uptick, readings for employment, new orders and production declined. Caixin Chief Economist Dr. He Fan said, “The slight upswing shows the manufacturing industry’s overall weakening has slowed down, indicating that previous stimulating measures have begun to take effect. Weak aggregate demand remained the biggest obstacle to economic growth, and the risk of deflation resulting from the continued fall in the prices of bulk commodities needs attention.” Japan’s PMI, meanwhile, increased to 52.4 in October from 51.0 in September as the production and new orders advanced. Finally, the PMI reading for South Korea fell while Taiwan’s reading increased to 47.8 in October from 46.9 in September and Vietnam’s index advanced slightly.
- As a reminder, all PMI readings can be found here.