Global Economic Analysis and News of Note: Global Manufacturing Sector Strong
- The J.P. Morgan global Purchasing Managers Index fell to 52.6 in May from 52.7 in April. Despite the small decline, the bank noted, “The global manufacturing sector continued to expand in May, achieving further steady growth” and said “he underlying dynamics of the survey, such as fuller order books, rising employment and positive business sentiment, also bode well for the future performance of manufacturing.”
- The IHS Markit PMI for the Eurozone increased to 57.0 in May from 56.7 in April as production rose at the fastest pace since April 2011 and new orders strengthened at their fastest pace in 74 months. The Markit PMI for the United Kingdom, meanwhile, fell to 56.7 this month from 57.3 last month despite improvements in employment, output, and new orders.
- PMI readings for Asian countries were mixed this month. The Caixin PMI for China fell to 49.6 in May from 50.0 in April as growth in new orders eased to its slowest pace since July 2016. The Nikkei index for Japan, meanwhile, increased to 53.1 in May from 52.7 in April as both output and new orders rose at stronger rates. South Korea’s index fell to 49.2 in May from 49.4 in April due to declines in new orders, employment, and output. The reading for the Philippines improved while PMI readings in India, Thailand, Malaysia, Taiwan, and Vietnam all fell.
- As a reminder, PMI readings from around the globe can be found here.