J.P.Morgan Global Manufacturing PMI™
Global manufacturing remains subdued in November
Conditions in the global manufacturing sector remained lacklustre in November. The J.P.Morgan Global Manufacturing PMI™ – a composite index1 produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – posted 52.0, unchanged from October’s 23-month low as growth of output and new orders remained below their respective long-run averages.
PMI readings signalled expansions across the consumer, investment and intermediate goods sectors. The sharpest growth was seen in the first and the weakest in the latter. All three sub-industries saw output and new orders rise.
Among the largest nations covered by the survey, manufacturing business conditions improved in the USA, the eurozone, Japan, China, the UK, Brazil and India. Deteriorations were seen in South Korea, Italy, Taiwan, Mexico, Poland, Turkey, Thailand and Malaysia.
Production growth ticked higher in November, but remained among the weakest seen over the past two-and-a-half years. Efforts to raise output were constrained by the relatively muted trend in new business. New orders rose at a pace unchanged from October’s 25-month low, with international trade flows the main drag.
The level of incoming new export business fell for the third straight month in November. Developed nations registered (on average) a marginal increase, as gains in the USA and Japan offset reductions in the euro area and the UK. Emerging markets saw a reduction for the eighth straight month, mainly due to ongoing declines in China.
Global manufacturing employment rose for the twentyseventh consecutive month in November. However, the rate of job creation was weaker than in October and a tick below the average for the current sequence of increase. Growth in staffing levels was seen in almost all of the nations covered by the survey, the main exceptions being losses in China, France and South Korea.
Inflationary pressures eased in November. Input costs increased at the slowest pace since August 2017, while output charge inflation eased to a 16-month low.