Global Economic Analysis and News of Note: Global Manufacturing On The Upswing
- The J.P. Morgan global purchasing managers’ index (PMI) increased from 52.7 in July to 53.1 in August, a 75-month high for the index. The bank’s Director of Global Economic Coordination David Hensley said, “The upturn in the global manufacturing sector is gathering pace in the third quarter, with August seeing the Manufacturing PMI rise to its highest level in over six years. Rates of expansion in output and new orders also accelerated, underpinning a further solid bounce in job creation. Although price pressures and supply-side constraints are rising, the sector should have sufficient momentum to sustain its current robust expansion.”
- The IHS PMI for the Eurozone rose to 57.4 in August from 56.6 in July because of an acceleration in output, robust domestic demand. and rising new export orders. The Markit PMI for the United Kingdom fell, meanwhile, dropping to 51.1 in August from 51.9 in July as new business declined for the second in a row.
- Manufacturing in Asia also strengthened last month. The Nikkei ASEAN PMI, which covers Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam rose to 50.4, up from 49.3 in July, due to renewed strength in both output and total new orders. The Caixin reading for China increased to 51.6 from 51.1 due to a rise in output and new export sales. Japan’s PMI, meanwhile, rose slightly, to 52.2 in August from 52.1 in July, due to increases in output and new orders while South Korea’s index increased, from 49.1 in July to 49.9 in August, even though output continued to decline. India’s manufacturing sector also strengthened last month. Nikkei’s index for the country rose to 51.2 from 47.9 as new orders and output returned to growth territory.
- As a reminder, all PMI readings can be found here.