Global Economic Analysis and News of Note: Global Manufacturing Index Holds Steady In June
· The JP Morgan global purchasing managers’ index (PMI) held steady at 52.6 from May to June. The bank said the reading “continues to point to solid, steady gains in global industry at mid-year.”
· The Markit PMI for the Eurozone increased to 57.4 in June from 57.0 in May. Markit said, “Output expanded on the back of rising inflows of new work, encouraging companies to maintain the pace of job creation close to May’s 20-year survey record high.” Germany’s PMI was at a 74-month high while Austria’s hit its highest peak in 76 months. The reading for the United Kingdom fell to a three-month low of 54.3 in June due to slower growth rates for output and new orders.
· The Caixin PMI for China increased to 50.4 in June from 49.6 in May due to higher readings for production and new orders. Japan’s PMI fell to 52.4 last month from 53.1 in May due in part to the fact that increased global demand placed pressure on supply chains for Japanese manufacturers. Manufacturing readings in Hong Kong, Taiwan, Thailand and Vietnam increased, meanwhile. Readings in South Korea, Singapore, India, and the Philippines declined.
· As a reminder, all PMI readings can be found here.