Global Economic Analysis: World Manufacturing Readings Remained Strong In January
- The J.P. Morgan global Purchasing Managers’ Index (PMI) remained relatively stable in January, falling to 54.4 in January from 54.5 in December. The bank said, “With business confidence still robust and further job creation reported, the sector is on course to sustain its current solid pace of expansion into the coming months.”
- The IHS/Markit PMI for the Eurozone fell one point from December to January, to 59.6 from 60.6. IHS/Markit noted, “Although January saw rates of growth in output and new orders ease from near-record highs at the end of last year, they remained among the best seen since the survey began in 1997.” The IHS/Markit PMI for the United Kingdom fell to 55.3 in January from 56.2 in December due to slower rates of output and new orders.
- The Caixin PMI for China was unchanged last month, remaining at the 51.5 reading shown in December. Output growth was at a 13-month high, however. South Korea’s PMI improved, as did Japan’s. Business confidence improved in both countries. Taiwan’s index rose to 56.9 in January, up slightly from 56.6 in December, and was its highest level since April 2011. The Nikkei ASEAN PMI, which includes, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam improved due to increases in output, new orders, and employment. India’s PMI fell to 52.4 from 54.7 due to a slowing in the rate of new orders.
- As a reminder, PMI readings for all countries are available here.