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Global manufacturing at 69-month high in February

Staff Writer | March 2, 2017
The rate of expansion in global manufacturing production accelerated to a three-year high in February, underpinned by stronger growth of total new orders and rising levels of international trade.
Global manufacturing
Global business   J.P.Morgan Global Manufacturing PMI
Business confidence also improved, encouraging faster job creation.

The headline J.P.Morgan Global Manufacturing PMI by J.P.Morgan and IHS Markit in association with ISM and IFP rose to a 69-month record of 52.9 in February, up from 52.7 in January.

The PMI, which provides a single-figure summary of manufacturing performance, has remained above the neutral 50.0 mark for 12 successive months.

Please note that later than usual release dates meant February 2017 PMI data were not available for South Korea and Brazil.

PMI indices tracking trends at consumer, intermediate and investment goods producers pointed to a broad-based improvement in operating conditions.

Rates of expansion were broadly similar across all three sectors.

Growth was led slightly by the consumer goods industry, whereas intermediate goods was the only category to register a faster rate of expansion than in January.

National data suggested that developed nations tended to fare better than emerging markets during February.

PMI levels edged higher in the euro area (70-month high) and Japan (35-month high) to offset mild decelerations in the rates of expansion in the US and the UK.

Although the rate of improvement across emerging markets remained weaker than that for developed nations, it was nonetheless slightly faster than in January.

This stronger upturn mainly reflected growth accelerations in China, India, Vietnam and the Czech Republic.

Global manufacturing employment increased for the sixth successive month in February, with the rate of job creation the sharpest for five-and-a-half years.

Among the larger industrial nations, staffing levels rose in the US, the euro area, Japan and the UK, but fell in China.

Part of the increase in worldwide manufacturing employment was to cope with rising backlogs of work, which accumulated for the ninth straight month.