The downturn in the global manufacturing sector eased sharply again in June. The J.P.Morgan Global Manufacturing PMI™ – a composite index produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – rose by a record 5.4 points to 47.8, up from 42.4 in May.
PMI survey indices tracking output, new orders and new
export orders also registered their steepest month-onmonth gains in June, but by remaining below 50.0 continued to signal contractions in all cases. The Future Output Index also rose to a record extent to signal an improvement in business optimism to a four-month high.
Measured overall, the rate of decline in global manufacturing production was the weakest during the current five-month sequence of decrease. The downturns in the three subsectors covered – consumer, intermediate and investment goods – also slowed sharply, taking each closer to stabilising only two months after April’s substantial contractions.
National PMI data signalled expansions in output for 15 out
of the 32 countries for which June data were available (up
from just two in May). Among the largest industrial nations,
growth was registered in China, France, Italy, the UK and
Brazil, while downturns eased in the US, Japan, Germany,
South Korea and India. Only Mexico saw a steeper pace of
contraction than in the prior survey month.
The level of new orders fell for the fifth successive month
in June, albeit at a much reduced pace. The trend in
international trade remained the principal drag, falling for
the twenty-second straight month and at one of the fastest
rates in the survey history.