Global Manufacturing Reading Declined Last Month
- The JP Morgan global purchasing managers’ index (PMI) was down slightly last month, falling to 50.8 in August from 51.0 in July due to slight declines in new orders and employment. In its analysis, however, JP Morgan said, “The PMI points to some acceleration in global manufacturing this quarter,” but that “the sluggish trends in new orders remains the main constraint and this will need to improve if global IP growth is to progress in the latter part of this year.”
- The Markit PMI for the Eurozone fell to 51.7 in August from 52.0 in July due to continued deterioration in France and a decline in production in Italy. Markit said production, new orders, and new export business all declined in the Eurozone, resulting in weaker job creation. The United Kingdom’s reading, meanwhile, bounced back last month, rising to 53.3 from 48.3 in July. Production and the rate of new orders were both up in August.
- Manufacturing readings in Asia were mixed last month. The Caixin PMI for China fell to 50.0 in August from 50.6 in July. Export sales in China fell, production and new orders rose—but at slower rates—and employers continued to make job cuts. Japan’s index rose to 49.5 from 49.3 due to the nation’s first increase in production in six months while South Korea’s PMI fell to 48.6 last month from 50.1 in July. Production in South Korea fell at the fastest rate since February while new orders dropped more significantly in August than during any month since June 2015. Vietnam’s reading increased to 52.1 in August from 51.9 in July due to the fastest rise in employment since December 2013. Taiwan’s PMI reading reached an 18-month high last month because of increases in production and new orders. India’s index rose to 52.6 in August from 51.8 in July due to “marked expansions” in new orders and new export orders.
- As a reminder, all PMI readings can be found here.
- According to the Ministry of Economy, Trade and Industry, growth in industrial output in Japan was flat between June and July. Analysts had predicted a 0.8 percent increase. According to Reuters, “By sector, transport equipment, electronic parts and devices grew in July, while chemicals and fabricated metals fell as reaction to the prior month's gains.”