The J.P.Morgan /
S&P Global Market Global Manufacturing
PMI was published overnight Tuesday, coming in at 48.8 in September.
Output, new orders, employment, and stocks of purchases all fell, contributing to the contraction.Suppliers’ delivery times were the only component making a positive contribution.Manufacturing production decreased for the first time in 2024 due to reduced new business.New orders and new export orders both experienced significant contractions.The intermediate and investment goods sectors saw a decline in production, while consumer goods had minimal growth.
Regional Performance:
The eurozone, led by Germany, saw the sharpest production decline.Output contracted further in the US, with marginal declines in Japan and stagnation in mainland China.India, Brazil, Spain, and the UK showed relatively stronger growth among major economies.
Employment and Purchasing Activity:
Employment levels declined for the second month in a row, marking the largest drop since December 2023.Purchasing activity and input stocks were reduced as manufacturers attempted to minimize costs.
Business Optimism and Price Inflation:
Business optimism fell to a 22-month low, with declines across all sub-industries.Input costs and selling prices rose at slower rates, marking the mildest increases since March.
Comment from J.P.Morgan:
Bennett Parrish, Global Economist at J.P.Morgan, noted that the global manufacturing output PMI showed a weakening trend, with a significant drop to a nine-month low of 49.4.
This article was written by Eamonn Sheridan at www.forexlive.com.
