Global Economic Analysis and News of Note: Manufacturing Expands In China, UK
- JP Morgan’s global purchasing manager index (PMI) increased to 52.7 in December from 52.1 in November due to increases in new orders, employment and production. According to the bank, growth was generally led by the United States and Western Europe regions.
- The Caixin PMI for China increased to 51.9 in December from 50.9 in November due largely to the fastest expansion in production in six years. Nikkei’s PMI for Japan rose to 52.4 in December from 51.3 in November, meanwhile, as production and new orders expanded at their fastest pace in 2016. Taiwan’s PMI increased to 56.2 in December, its highest level since April 2011, from 54.7 in November due to increases in the number of new orders and overall output. The manufacturing reading for Vietnam fell to 52.4 in December from 54.0 even though the rate of new orders and production expanded. The ASEAN (Philippines, Vietnam, Thailand, Myanmar, Indonesia, Malaysia, and Singapore) PMI deteriorated at steepest pace since November 2015 due to declines in output and new export sales.
- The Markit PMI for the United Kingdom hit a 30-month high last month, rising to 56.1 in December from 53.6 in November. The stronger reading was due primarily to better rates of production and new orders.
- As a reminder, all PMI readings can be found here.