Global Economic News: Global Manufacturing Readings Mixed In April
- The J.P. Morgan global purchasing managers’ index (PMI) increased to 53.5 in April from 53.3 in March. Output and new orders increased while employment in the manufacturing sector remained steady. The bank said, “Forward-looking orders data point to solid output gains in coming months, constrained by a cooling in the inventory cycle.”
- The IHS/Markit index for Eurozone countries fell slightly, to 56.2 last month from 56.6 the month before due to slower rates of expansion in five of the eight nations covered. The IHS/Markit index for the United Kingdom fell to a 17-month low, dropping to 53.9 in April from 54.9 in March. Output, new orders, and employment all slowed in the United Kingdom last month.
- Asian manufacturing readings were mixed last month. The Caixin PMI for China increased slightly to 51.1 in April from 51.0 in March. However, Caixin also said, “Data indicated that weaker demand in international markets had partly weighed on overall growth, with new export sales declining for the first time since November 2016.” Japan’s manufacturing reading rose to 53.8 from 53.1 due to higher output and employment while South Korea’s index fell to 48.4 from 49.1 because of slower output. India’s index also increased due to higher levels of employment, new orders, and output.
- As reminder, all PMI readings can be found here.