J.P. Morgan Global Manufacturing PMI report
On September 1, 2015, Markit Economics released its final August PMI (Purchasing Managers’ Index) report for the United States (SPY), the Eurozone (HEDJ), and Asia. It also released its Global Manufacturing PMI report for August.
Produced by J.P. Morgan (JPM) and Markit in association with the ISM (Institute for Supply Management) and the IFPSM (International Federation of Purchasing and Supply Management), the report indicated that global growth in the manufacturing sector fell to its lowest level in more than two years.
Global manufacturing growth fell to 2-year low in August
The composite index fell to 50.7 in August from 51.0 in July. The summary report indicated that global PMI expanded at a slower pace in August compared to July. Increases in employment, input prices, and output came at a slower pace in August, while exports fell. However, new orders did expand at a faster pace in August. Multinational companies such as Nike (NKE) and Apple (AAPL) have seen variability in their earnings on account of a global growth slowdown.
Global manufacturing slowing in the third quarter
The report stated, “The Czech Republic, Italy, Spain and Germany recorded the fastest rates of output expansion during August. The US, due to its large relative size, was also a significant contributor to the latest increase in global manufacturing production, despite growth in the nation easing to a 19-month low. Conditions continued to strengthen in the eurozone, with output growth accelerating to a 15-month high. The main drags on the global average were contractions in China, France, Taiwan, South Korea, Indonesia, Malaysia, Russia, Greece and Brazil. There were some pockets of growth in Asia, however, with expansions in Japan, India and Vietnam.”
In this series, we’ll take you through these reports. Let’s find out where industrial activity is picking up and where it’s lagging in the next part.