Global Economic Analysis and News of Note: Global Manufacturing Industry Improved In October
- The JP Morgan global purchasing managers’ index (PMI) rose to 52.0 in October, its highest level in two years, from 51.0 in September. The bank said, “October saw growth of the global manufacturing sector accelerate to a two-year high, as new order inflows strengthened and international trade volumes picked up pace. Firmer demand combined with rising backlogs of work and higher employment all point to this growth rebound being maintained though some cooling can be expected as inventory growth stabilizes.”
- The Markit PMI for the Eurozone rose to 53.5 in October from 52.6 in September due to a broad-based growth acceleration led by the Netherlands and Germany. The Markit PMI for the United Kingdom, meanwhile, fell to 54.3 last month from 55.5 in September even though output, new orders, and employment continued to improve.
- Asian PMI readings were mixed in October. China’s reading improved to 51.2 last month from 50.1 in September. According to Caixin, output expanded “at the quickest rate in over five-and-a-half years amid a rebound in new order growth.” Japan’s PMI hit its highest level in nine months, rising to 51.4 in October from 50.4 in September due to improvements in the readings for new orders and employment. Despite an increase in South Korea’s index, to 48.0 in October from 47.6 in September, output was down for third month in a row, new orders declined at their sharpest pace since June 2015, and employment levels fell at the fastest rate since January. Vietnam’s index fell 1.2 percentage points due to a drop in output. Taiwan’s reading increased to 52.7 in October from 52.2 in September because of increases in production, new orders, and new export orders. Finally, India’s PMI hit a 22-month high in October due to improvements in new orders, purchasing activity, and output.
- As a reminder, all PMI readings may be found here.