Global manufacturing saw production fall for the first time since October 2012, new orders fell at the fastest pace for almost seven years. Business optimism slumped to a series-record low. Declines were registered in the euro area, China and Japan. Increases in the US and India.
Global manufacturing saw production fall for the first time since October 2012, new orders fell at the fastest pace for almost seven years. Business optimism slumped to a series-record low. Declines were registered in the euro area, China and Japan. Increases in the US and India.
J.P.Morgan Global Manufacturing PMI™ June 2019
Highlights
- Production fell for the first time since October 2012
- New order contracted at the fastest pace for almost seven years.
- Business optimism slumped to a series-record low.
- At 49.4 in June, the J.P.Morgan Global Manufacturing PMI™ – a composite index1 produced by J.P.Morgan and IHS Markit in association with ISM and IFPSM – fell to its lowest level for over six-and-a-half years and posted back-to-back sub-50.0 readings for the first time since the second half of 2012.
Of the 30 nations for which a June PMI reading was available, the majority (18) signalled contraction. China, Japan, Germany, the UK, Taiwan, South Korea, Italy and Russia were among those countries experiencing downturns. The US, India, Brazil and Australia were some of the larger industrial nations to register an expansion.
Comments
Commenting on the survey, Olya Borichevska, from Global Economic Research at J.P.Morgan, said:
“The global manufacturing sector downshifted again at the end of the second quarter. The PMI surveys signalled that output stopped growing, as inflows of new business shrank at the fastest pace since September 2012. This impacted hiring and business optimism, with the latter at a series-record low. Conditions will need to stage a marked recovery if manufacturing is to revive later in the year.”
About the Report
The Global Report on Manufacturing is compiled by IHS Markit based on the results of surveys covering over 13,500 purchasing executives in over 40 countries. Together these countries account for an estimated 98% of global manufacturing output2 . Questions are asked about real events and are not opinion based. Data are presented in the form of diffusion indices, where an index reading above 50.0 indicates an increase in the variable since the previous month and below 50.0 a decrease.
Source: IHS Markit
From the TradersCommunity News Desk