Global copper users experienced a further drop in new
factory orders in May, the sixth monthly decline in a row. In
response, firms reduced production levels and discounted
their selling charges for the first time in nearly three years, as
input price inflation cooled.
At 49.4 in May, the seasonally adjusted Global Copper
Users Purchasing Managers Index™ (PMI) – a composite
indicator designed to give an accurate overview of operating
conditions at manufacturers identified as heavy users of
copper – ticked up from 49.1 in April, to signal a similarly
marginal deterioration in business conditions. The reading
extended the current sequence of decline to six months, but
indicated the weakest drop in this period.
Goods producers using copper reduced their output
modestly over the course of May. Notably, European users
cut production at the sharpest rate in nearly seven years.
Conversely, output growth at US users improved to a five month high