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Global manufacturing remained in low growth gear in August

Staff Writer | September 3, 2016
At 50.8 in August, down from 51.0 in July, the J.P.Morgan Global Manufacturing PMI signalled a further moderate improvement in global manufacturing operating conditions.
Global manufacturing
Global economy   J.P.Morgan Global Manufacturing PMI
North America and Europe remained the prime drivers of the expansion of the global manufacturing sector, as conditions in Asia stagnated. Among the Asian manufacturing sectors covered by the survey, Japan, South Korea, Malaysia, Thailand and Myanmar all saw contractions and China stagnated.

Expansions were seen in Taiwan, India, Indonesia, Vietnam and the Philippines. Further growth was seen in the US, Mexico and Canada, although only the latter nation saw an improved rate of expansion.

The pace of increase slowed in the euro area, reflecting weaker growth in Germany and Austria and contractions in France and Italy.

The UK, meanwhile, rebounded strongly from July’s contraction. The downturn in Brazil continued, whereas Russia expanded.

Global manufacturing production increased for the third successive month in August, with the rate of expansion ticking up to its highest since November of last year. Sector data signalled that the sharpest increase in output was seen at consumer goods producers.

Modest expansions were also registered in the intermediate and investment goods sectors. Growth of new work received was slower than in July, despite a slight acceleration in the rate of increase in new export business to a nine-month high.

After rising for the first time in six months during July, August saw a marginal reduction in global manufacturing employment. Job creation slowed sharply in the US, eased in the euro area, stagnated in Japan, while China reported further job losses.