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Growth of global manufacturing remains subdued at start of 2016

Staff writer ▼ | February 3, 2016
The global manufacturing sector registered a mild growth acceleration at the start of 2016.
Global manufacturing
World   J.P.Morgan Global Manufacturing PMI
At 50.9 in January, the J.P.Morgan Global Manufacturing PMI – a composite index produced by J.P.Morgan and Markit in association with ISM and IFPSM – rose from December’s three-month low of 50.7, but remained broadly in line with the lacklustre average registered for 2015 as a whole (51.0).

The back histories of the global manufacturing indices from 2011 onwards have been revised in line with the annual review of the weights applied to the data. For January 2016 data, the later than usual release of the Mexico PMI meant it was unavailable for inclusion at the time of publication.

The developed markets remained the principal drivers of the ongoing global manufacturing expansion, seeing growth recorded for the thirty-third successive month.

In contrast, the Emerging Market PMI signalled contraction for the tenth month in a row.

January PMI readings for the US and the UK rose from lows reached during December. The eurozone and Japan, meanwhile, continued to expand (albeit at moderately slower rates). In contrast, three of the main emerging market nations (Brazil, Russia and China) all remained mired in contraction. India saw its PMI rise back into expansion territory.

Elsewhere in the global manufacturing sector, operating conditions deteriorated in Canada, South Korea, Indonesia and Malaysia. Improvements were seen in Poland, the Czech Republic, Taiwan, Turkey and Vietnam.

Global manufacturing production increased for the thirty-ninth successive month in January. However, the rate of expansion was unchanged from December’s three-month low.

Underlying the latest increase in output were improved inflows of new work, despite the continued lacklustre trend in new export order growth.