Global Manufacturing Index At 14-Month Low
- The JP Morgan global purchasing managers’ index (PMI) fell to 53.0 in June from 53.1 in May and is now at a 14-month low. The bank said the rate of expansion was steepest in the investment goods sector, followed by consumer goods, and the pace of improvement accelerated in the intermediate goods category, but remained below the global average.
- Manufacturing readings in Asia were mixed last month. Caixin’s PMI for China fell to 51.0 in June from 51.1 in May as demand from overseas remained subdued and as new export sales fell for the third month in a row. Japan’s manufacturing reading improved, however, rising to 53.0 last month from 52.8 in May. Output and employment both expanded in June. South Korea’s manufacturing index rose, to 49.8 in June from 48.9 in May, while Vietnam’s PMI also improved as employment expanded at a record pace. Nikkei’s reading for India also improved due to the fastest rise in new orders rise for 2018 so far.
- The IHS/Markit PMI for the Eurozone fell to 54.9 in June from 55.5 in May due to a slowdown in output and new order growth. The IHS/Markit PMI for the United Kingdom rose slightly in June, rising to 54.4 from 54.3 in May. The report noted that, although the rate of increase in new business edged up to a three-month high, it remained among the weakest registered over the past year- and-a-half.
- As a reminder, all PMI readings can be found here.
- The German Federal Statistical Office reported last week that industrial production in the country increased 2.6 percent from April to May due to higher rates of production of both consumer and investment goods. German industrial orders also rose 2.6 percent in May.