Slowdown In China Brings Down Global Manufacturing Index
- The J.P. Morgan global Purchasing Managers Index (PMI) fell for the ninth straight month in a row and was at its lowest level since August 2016. According to the bank, the slowdown was due mainly to the Chinese economy.
- The IHS Markit PMI for the Eurozone fell to 50.5 in January from 51.4 in December due to the sharpest reduction in new work since April 2013. Germany’s reading fell to a 50-month low while France’s reading did improve. The IHS Markit PMI for the United Kingdom fell to 52.8 in January from 54.2 in December due to a slowdown in employment and new orders.
- Manufacturing readings in Asia were mostly down last month. Caixin’s PMI for China fell to 48.3 in January, down from 49.7 in December. It was the lowest reading since February 2016. Production declined and output fell modestly. Caixin said “Underlying data indicated that weakness largely stemmed from muted domestic demand, as new work from abroad rose slightly at the start of the 2019.” Nikkei’s index for Japan hit a 29-month low as new export orders declined at sharpest pace since July 2016. Readings for Indonesia, Myanmar, the Philippines, South Korea, Taiwan, Thailand, and Vietnam all fell while India’s PMI reading improved.
- Click here to read the full reports for the countries mentioned above and to access all available PMI readings.