Global Economic Analysis and News of Note: Global Manufacturing Index Improves
- The JP Morgan global purchasing managers index (PMI) held steady at 52.7 from December 2016 to January 2017. The bank said, “Business conditions in the global manufacturing sector improved at a solid pace in January, with output, new orders and employment all expanding at similar rates to December. With backlogs of work rising further and business confidence increasing, the sector looks firmly set to build on this solid start to the new year during the coming months.”
- The Markit PMI for the Eurozone rose slightly, to 55.2 in January from 55.1 in December. Markit said the number of job openings and new business improved at their strongest rates since 2011. The Markit reading for the United Kingdom, meanwhile, fell slightly to 55.9 in January from 56.1 in December. According to Markit, “Output rose at the fastest rate since May 2014, as new order intakes expanded at a robust pace.”
- Readings in Asia were mixed last month. The Caixin PMI for China fell to 51.0 in January from 51.9 in December due to a slowdown in production. Japan’s PMI rose to 52.7 from 52.4. New orders in Japan picked up and operating conditions improved at their sharpest rate in nearly three years. South Korea’s PMI also declined, dropping from 49.4 to 49.0 due to a worsening in operating conditions. PMI readings in Vietnam and India also improved, and the ASEAN index, which covers countries like the Philippines and Thailand, rose to 50.0 in January from 49.4 in December.
- As a reminder, all PMI readings can be found here.