Global Manufacturing Outlook “Still Positive”
- The JP Morgan global manufacturing Purchasing Managers’ Index (PMI) fell to 52.8 in April from 53.0 in March. The bank said, “The start of the second quarter saw a slight loss of growth momentum in the global manufacturing sector. Rates of increase eased for both production and new orders, although the outlook remains positive given a backdrop of solid business confidence and rising backlogs of work.”
- The Markit PMI for the Eurozone increased to 56.7 in April from 56.2 in March as Austria and Italy’s manufacturing readings hit a 73-month high and France’s index hit a 72-month high. Markit noted output, new orders, and employment in April in the Eurozone manufacturing industry all expanded at their fastest pace in six years. The United Kingdom’s PMI rose to 57.3 in April from 54.2 in March due to improvements in new orders and output.
- Manufacturing readings for Asian economies were mixed last month. The Caixin PMI for China fell to 50.3 in April from 51.2 in March. Production and new order growth softened while employment across the sector declined at the fastest pace since the start of the year. Japan’s Nikkei reading, meanwhile, increased to 52.7 from 52.4 due to a faster rise in new export orders and a marked increase in purchasing activity. South Korea’s manufacturing index increased slightly despite the fastest decline in new export orders in six months and continuing declines in production and employment. India’s PMI held steady at 52.5 from March to April.
- As a reminder, explanations of all PMI readings can be found here.