Global Economic Analysis and News of Note: Manufacturing Sector In Europe Expands
- The JP Morgan global purchasing managers’ index (PMI) rose to 52.7 in July from 52.6 in June. David Hensley, Director of Global Economic Coordination at J.P.Morgan, said, “Although the rate of output expansion eased slightly, stronger inflows of new business and rising workforce numbers suggest that the current pace of increase should be broadly sustained going forward.”
- The IHS Eurozone PMI fell to 56.6 in July from 57.4 in June despite the fact that growth was recorded across all nations. Rates of expansion in output, new orders, and new export business all eased in the Eurozone last month. The IHS reading for the United Kingdom rose to 55.1 in July from 54.2 in June, meanwhile, due to strong rates of job growth and output.
- Caixin’s reading for China rose to 51.1 in July from 50.4 in June. Caixin said both output and new orders rose at the fastest rates for five months, helped by a solid upturn in new export sales. Taiwan’s PMI also increased, to 53.6 from 53.3, while the Nikkei reading for Japan fell to 52.1 from 52.4 because of slower gains in output and new orders. India’s PMI fell three points, to 47.9 from 50.9 the month before as production declined at the fastest rate since global financial crisis. South Korea’s index also declined, from 50.0 to 49.1, due in part to weaker demand in the automobiles sector. Finally, the Nikkei ASEAN PMI, which includes the manufacturing sectors in the Philippines, Vietnam, Thailand, Myanmar, Indonesia, Malaysia and Singapore, fell to 49.3 from 50.0 in June due to declines in output and new orders.
- As a reminder, all PMI readings can be found here.