Global Economic Analysis and News of Note: Global Steel Production Up Seven Percent
- The JP Morgan global Purchasing Managers Index (PMI) rose to a 69 month high of 52.9 in February, up from 52.7 in January. According to the bank, “Global manufacturing employment increased for the sixth successive month in February, with the rate of job creation the sharpest for five-and-a-half years. Among the larger industrial nations, staffing levels rose in the US, the euro area, Japan and the UK, but fell in China.”
- The Markit PMI for the Eurozone rose to 55.4 in February from 55.2 in January. That reading was the index’s highest in 70 months and was due to the fact that manufacturing production, new orders, and employment rose in all Eurozone nations except Greece. Markit’s reading for the United Kingdom fell, meanwhile, dropping to 54.6 last month from 55.7 in January.
- The Caixin PMI for China rose to 51.7 in February from 51.0 in January. The bank said, “February survey data pointed to a further rise in Chinese manufacturing production, with the rate of expansion picking up from that recorded in January. That said, the rate of growth was moderate overall and below those seen through the final quarter of 2016. Supporting higher production was a further rise in total new business.” The Nikkei reading for Japan hit 53.3 in February, the index’s highest level in 35 months, because of expansions in new business, production, and job growth. Taiwan’s PMI fell to 54.5 in February from 55.6 in January due to tepid production. India’s index also rose slightly, to 50.7 in February from 50.4 in January. The Nikkei PMI for the ASEAN region, which includes Vietnam, the Philippines, Myanmar, Thailand, Malaysia, Indonesia, and Singapore rose to 50.3 from 50.0 due to small increases in the number of new orders and in output.
- As a reminder, all PMI readings can be found here.
- In other global economic news: the value of exports from South Korea, which rose 20.2 percent from February 2016 to February 2017, increased at its fastest pace in five years; India’s economy expanded at a seven percent annualized growth rate in the third quarter of 2017; and global steel production increased seven percent from January 2016 to January 2017.