Manufacturing Sectors Cool Across Globe
- The JP Morgan global Purchasing Managers’ Index (PMI) fell to 52.7 in July from 53.0 in June. David Hensley, the bank’s director of Global Economic Coordination, said, “The manufacturing upturn has lost sizeable momentum since the start of the year. However, with final demand growth having firmed in recent months and signs that an inventory drag is nearing an end, we think output gains will strengthen in coming months.”
- The Caixin PMI for China fell to 50.8 in July from 51.0 in June. New export orders fell at the steepest pace for 25 months and a further reduction in staffing levels contributed to a sustained increase in backlogs of work. The Nikkei index for Japan also declined Readings from India, Malaysia, Myanmar, the Philippines, South Korea, Taiwan, Thailand, and Vietnam also declined as New business growth eased to a mild pace and output rose to the slowest extent in four months.
- The IHS/Markit PMI for the Eurozone increased to 55.1 in July from 54.9 in June even though growth of both output and new orders remained subdued compared to earlier in the year and new export order growth hit a near-two year low amid concerns about tariffs and trade wars. IHS/Markit’s survey for the United Kingdom fell to a three-month low due to weaker increases in both output and new orders.
- As a reminder, PMI readings for all countries can be found here.