The global manufacturing sector maintained its lethargic start to 2016. At 50.0 in May, the J.P.Morgan Global Manufacturing PMI™ – a composite index1 produced by J.P.Morgan and Markit in association with ISM and IFPSM – registered a reading identical to the no-change mark to signal a broad stagnation of industry. The global manufacturing sector maintained its lethargic start to 2016.
At 50.0 in May, the J.P.Morgan Global Manufacturing PMI™ – a composite index1 produced by J.P.Morgan and Markit in association with ISM and IFPSM – registered a reading identical to the no-change mark to signal a broad stagnation of industry.
Rates of expansion in production and new orders also eased to a near-stagnation, while the pace of contraction in new export business was one of the steepest during the past three years. The muted performance of manufacturing was also reflected in the labour market, as staffing levels fell for the fourth straight month. National PMI data signalled that where growth was recorded this was mainly centred on North America and Europe.
Downturns continued in Asia and South America. Although the US PMI remained above the 50.0 no-change mark, its rate of expansion eased to its lowest since the (Markit) survey began in October 2009. Output fell slightly for the first time in the series history, as growth in new orders slowed further and exports fell. Conditions in Mexico and Canada continued to improve at solid rates. The euro area PMI slid to a three-month low in May, but nonetheless remained above the global average for the fifteenth month running.
Almost all of the eurozone nations for which data are collected registered expansions, the exceptions being France and Greece. Elsewhere in Europe, UK manufacturing stagnated, whereas growth remained solid in Poland and the Czech Republic.
Commenting on the survey, David Hensley, Director of Global Economic Coordination at J.P.Morgan, said: “The May PMI data suggest that the global manufacturing sector remains in a low gear. Indices for output, new orders and the headline PMI were all at, or barely above, the stagnation mark. The move up in the finished goods inventory index suggests manufacturers are still working to realign stocks with demand.”
