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.
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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.
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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.
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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.
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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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