January 7, 2019

Manufacturing Readings Softer Around Globe


  • The JP Morgan global purchasing managers’ index (PMI) fell to 51.5 in December from 52.0 in November and is now at its lowest level since September 2016. The bank’s report said, “Output growth remained stubbornly low, rates of increase in new orders and employment slowed and international trade flows deteriorated. The outlook also remains relatively lackluster, as business confidence dropped to its lowest level in the series history.”
  • Caixin’s PMI for China fell to 49.7 in December from 50.2 in November, signaling a renewed deterioration in overall operating conditions. The decline was the first time that the health of the sector worsened since May 2017. The IHS Markit PMI for the European Union fell 0.4 percentage points to 51.4 last month. New orders slowed and business confidence about the future fell to its lowest level in the last six months. The IHS Markit PMI for the United Kingdom, meanwhile, rose to a six-month high of 54.2 due to stronger new order and new export order inflows.
  • Nikkei’s reading for Japan improved by 0.4 percentage points due to an increase in output (business optimism was down in the country). Nikkei’s reading for India declined even though growth in new work was “robust … the upturn the second-quickest since December 2017” and its reading for South Korea improved due to increased business optimism. The reading for ASEAN countries – Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam – held relatively steady from November to December though exports were at a five-month low.
  • As a reminder, PMI readings for all countries can be found here.