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ICYMI – J.P. Morgan Global Manufacturing PMI signals contraction for 3rd consecutive month

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The JPMorgan/S&P Global Market Global Manufacturing PMI was published Tuesday night, reaching 48.8 in September.

  • Output, new orders, employment and inventories of purchases declined, contributing to the contraction.
  • Suppliers’ delivery times were the only element that made a positive contribution.
  • Manufacturing output fell for the first time in 2024 due to a decline in new business.
  • New orders and new export orders saw significant contractions.
  • The intermediate and investment goods sectors witnessed a decline in production, while consumer goods saw little growth.
  • Regional performance:

    • The euro zone, led by Germany, saw the sharpest decline in output.
    • Output contracted further in the United States, with marginal declines in Japan and stagnation in mainland China.
    • India, Brazil, Spain and the United Kingdom showed relatively stronger growth among major economies.
  • Recruitment and purchasing activity:

    • Employment levels fell for the second month in a row, recording the largest decline since December 2023.
    • Purchasing activity and input inventories were reduced as manufacturers tried to reduce costs.
  • Business optimism and price inflation:

    • Business optimism fell to its lowest level in 22 months, with declines across all sub-industries.
    • Input costs and selling prices rose at slower rates, recording the smallest increases since March.
  • Comment from JP Morgan:

    • Bennett Parrish, global economist at JP Morgan, noted that the PMI for global manufacturing output showed a weak trend, with a significant decline to a nine-month low of 49.4.

This article was written by Eamonn Sheridan at www.forexlive.com.

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