ICYMI – J.P. Morgan Global Manufacturing PMI signals contraction for 3rd consecutive month

The J.P.Morgan /
S&P Global Market Global Manufacturing
PMI was published overnight Tuesday, coming in at 48.8 in September.

• Output, new orders, employment, and stocks of purchases all fell, contributing to the contraction.
• Suppliers’ delivery times were the only component making a positive contribution.

• Manufacturing production decreased for the first time in 2024 due to reduced new business.
• New orders and new export orders both experienced significant contractions.
• The intermediate and investment goods sectors saw a decline in production, while consumer goods had minimal growth.

• Regional Performance:

  • The eurozone, led by Germany, saw the sharpest production decline.
  • Output contracted further in the US, with marginal declines in Japan and stagnation in mainland China.
  • India, Brazil, Spain, and the UK showed relatively stronger growth among major economies.

• Employment and Purchasing Activity:

  • Employment levels declined for the second month in a row, marking the largest drop since December 2023.
  • Purchasing activity and input stocks were reduced as manufacturers attempted to minimize costs.

• Business Optimism and Price Inflation:

  • Business optimism fell to a 22-month low, with declines across all sub-industries.
  • Input costs and selling prices rose at slower rates, marking the mildest increases since March.

• Comment from J.P.Morgan:

  • Bennett Parrish, Global Economist at J.P.Morgan, noted that the global manufacturing output PMI showed a weakening trend, with a significant drop to a nine-month low of 49.4.

This article was written by Eamonn Sheridan at www.forexlive.com.