Global manufacturing momentum builds in August
Manufacturing PMI at 3-month high o 52.3.
Global manufacturing activity gathered momentum in August, with output, new orders and employment all accelerating, according to the latest J.P.Morgan Global Manufacturing PMI, compiled by S&P Global.
The headline index climbed to a three-month high of 52.3, up from 52.1 in July, extending its run above the 50.0 no-change mark to thirteen months. All five components pointed to improving conditions, with new stock levels rising and supplier delivery times lengthening further.
Vietnam's figures were absent from this month's global calculation owing to a delayed release.
Factory output rose across consumer, intermediate and investment goods categories alike, with the pick-up led chiefly by consumer goods, even as growth eased slightly in the other two segments. Twenty of the 32 nations surveyed in August reported higher output, including mainland China, the United States, the eurozone, Japan, the UK, India and South Korea. Brazil, Italy, Spain, Poland, Mexico and Russia numbered amongst those where output fell.
New orders grew at their fastest clip in three months, with manufacturers reporting stronger demand across all three goods categories. Export sales returned to growth for the first time since April, expanding at their quickest rate in six months, driven by gains in mainland China, Japan and the eurozone. North America bucked the trend, with exports slipping across the US, Canada and Mexico.
The broader upturn fed through to the jobs market, where hiring rose at its fastest rate in three years, led by gains in the US and Japan, whilst mainland China's headcount held steady. Business confidence, meanwhile, matched its highest level since February.
Cost pressures showed signs of easing. Input price inflation slowed to a six-month low, as did the pace at which firms raised their own selling prices, whilst delivery delays lengthened to among the mildest extents seen since March.
Maia Crook, global economist at J.P.Morgan, said the rise in the output index pointed to continuing strength across global industry, adding that forward-looking measures told a similarly encouraging story, with new orders nearing recent highs and the future output gauge back to its May level.
