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Global Manufacturing PMI at 34-month high in December

Staff Writer | January 4, 2017
December PMI data signalled a stronger improvement in the health of the global manufacturing sector, rounding off the best quarter for industry since the start of 2014.
Global Manufacturing
Manufacturing   J.P.Morgan Global Manufacturing PMI
The headline J.P.Morgan Global Manufacturing PMI produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM rose for the fourth straight month to post 52.7, up from 52.1 in November, its highest level since February 2014. Please note that a later than usual release date meant that final numbers were not available for Japan.

December 2016 global manufacturing index values therefore include data from the Japan Flash Manufacturing PMI. Growth was seen across the consumer, intermediate and investment goods sectors in December. Moreover, rates of expansion improved in all three categories.

Over 2016 as a whole, growth was above that registered in 2015 in the intermediate goods industry, but slower at producers of consumer and investment goods. By nation, growth was generally led by the US and Western Europe regions.

The PMI readings for the US and the eurozone rose to 21- and 68-month highs respectively, while the UK PMI registered its best level in two-and-a-half years. Underlying the improvement in the euro area were stronger expansions in almost all of the nations of the currency union covered by the global PMI (the sole exception was Greece).

The performance of the Asia region also improved, as PMI readings signalled growth in Japan, China, Taiwan, Vietnam, Philippines and Thailand.

However, nations registering contractions were also more prevalent in Asia, with declines indicated in India, South Korea, Indonesia, Malaysia and Myanmar. Elsewhere in the global manufacturing sector, the upturn in Russia gathered pace and the downturn in Brazil accelerated.

Global manufacturing production increased at the fastest pace for two-and-a-half years in December, underpinned by the steepest intake of new work since July 2014.

Although the trend in new export business remained relatively muted, the pace of expansion in international trade volumes hit a 27-month high.