Global Economic Analysis and News of Note: Worldwide Manufacturing Survey At Highest Level Since March 2011
- The J.P. Morgan Global Purchasing Managers’ Index (PMI) rose to 54.0 in November, up from 53.5 in October and its highest reading since March 2011. The bank said, “The November survey points to a strong increase in the rate of expansion of the global manufacturing sector, with growth of output, new orders, new export business and employment all gaining strength.”
- The manufacturing sector is strong in Europe. The IHS Markit PMI for the Eurozone increased to 60.1 in November, it’s highest reading since April 2000, and up from 58.5 in October. Growth of output and new orders both climbed to multi-year highs and the readings for Germany, the Netherlands, Austria, and Ireland all hit, or a near, record readings. The IHS Markit PMI for the United Kingdom, meanwhile, hit a 51-month high in November, rising to 58.2 in November from 56.6 in October. Output, new orders, and employment all improved while investment increased at the sharpest pace since 1994.
- Manufacturing readings improved in most major Asian economies except for China. The Caixin reading for China fell to 50.8 in November, its lowest level for five months, from 51.0 in October. Nikkei’s PMI for Japan rose in November to 53.6, from 52.8 in October, signaling the strongest improvement in manufacturing sector conditions since March 2014. The reading for South Korea also improved due to the fastest improvement in output since February 2015. The Nikkei reading for India increased to 52.6 in November from 50.3 in October due to improvements in output, new orders, and employment.
- As a reminder, all PMI readings can be found here.