Global Manufacturing Industry Slows Somewhat In October
- J.P. Morgan’s global purchasing managers’ index fell to 52.1 in October from 52.2 in September. The index is now at its lowest level in two years. The bank noted, “Global manufacturing production rose at the slowest pace in 28 months in October. Output growth was constrained by a weaker increase in new business, including a second successive month-on-month decrease in new export orders.”
- Readings for European markets were down sharply. The IHS Markit PMI for the Eurozone fell to 52.0 in October from 53.2 in September as exports declined for the first time in nearly five-and-a-half years and trade concerns pushed confidence down to lowest level since December 2012. For the United Kingdom, IHS Markit said the manufacturing “slowed sharply during October. Output growth weakened, while new order inflows and employment both declined for the first time since July 2016.”
- Most readings for Asian nations improved in September. Caixin’s index for China was largely unchanged, but the reading did indicate that sentiment about future growth “dipped to an 11-month low amid concerns over current subdued market conditions and the impact of the ongoing China-U.S. trade dispute.” Nikkei’s reading for Japan rose to a four-month high of 52.9 as foreign demand improved for first time in five months. Nikkei’s reading for India also was stronger as new orders and production increased at quickest rates in four months and job creation hit a ten-month high. Readings in South Korea and Taiwan declined, however.
- As a reminder, all PMI readings can be found here.