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December 8, 2014

Global Economic Analysis and News of Note

  • According to J.P. Morgan and Markit, “Global manufacturing production expanded at the slowest pace for 15 months in November, as growth of new orders hit a 16-month low and the trend in international trade volumes stagnated.” The global manufacturing purchasing managers’ index (PMI) fell to 51.8 – a 14-month low – in November from 52.2 in October. Additionally, “The forward-looking orders-to-inventory ratio also edged down to its weakest level since the end of 2012.”
  • The Markit Eurozone PMI fell to 50.1 in November from 50.6 in October as output, new orders and prices fell. (Employment was flat.) France and Germany’s PMIs were both under 50.0 and were at three-month and 17-month lows respectively.
  • The manufacturing industries in several Asian nations were very mixed last month. In China, the HSBC manufacturing index fell to 50.0 – the mark that delineates expansion from contraction – in November from 50.4 in October (a drop in new export growth led the decline) while the Markit PMI for Japan fell to 52.0 in November from 52.4 in October as production and new orders improved. Meanwhile, South Korea’s PMI increased slightly, but was still under the all-important 50.0 mark; Vietnam’s increased to 52.1 in November from 51.0 in October; and Taiwan’s index fell to 51.4 from 52.0 as output and new orders slowed. India was one bright spot: the HSBC index for the country rose to 53.3 in November – and 21-month high – from 51.6 in October.