Economy
Global PMI Improves
Written by Brett Linton
September 5, 2013
The Global PMI composite index increased to 51.7 for the month of August, up from the 50.8 reading in July. This slight yet meaningful increase marks the eighth consecutive month of expansion in the manufacturing sector. Manufacturing production increased for the tenth consecutive month, with the rate of growth at the highest level recorded since January of this year.
August production growth in the U.S. slowed to a ten-month low, providing an offset for the growth in China, Japan, and Great Britain. Great Britain’s rate of increase in manufacturing output increased to the highest level since 1994, and in Japan they were at a 2.5 year high. Countries reporting lower output volumes included India, Taiwan, South Korea, Indonesia, Vietnam and Brazil.
The growth rate of new orders for global manufacturing is now at a 30-month high in August. Manufacturing employment also rose for this month, showing a slight increase in payroll numbers. Average input prices in August rose at the fastest pace since January.
Commenting on the survey, David Hensley, Director of Global Economics Coordination at JPMorgan, said “The global manufacturing sector showed signs of strengthening in the past two month’s surveys. Inventory positions are lean, and this appears to be combining with faster gains in final demand to promote acceleration in factory output.” (Source: JP Morgan)
Brett Linton
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