ALL: Global Composite PMI

Thu Jan 04 10:00:00 CST 2018

Actual Previous
Level 54.4 54.0

December global output rose at the fastest pace since March 2015, underpinned by the steepest increase in new business in three-and-a half years. The global all industrial PMI climbed to 54.4, up from 54.1 the month before. The expansion remained broad-based, with economic activity rising across the six sectors covered by the survey (consumer, intermediate and investment goods and business, consumer and financial services).The headline index has now indicated expansion for 63 consecutive months. Output growth accelerated in both the manufacturing and service sectors with the former indicating the stronger pace. PMI data from the Eurozone remained the strongest performing region. Economic activity increased at faster rates in China, the UK, India and Australia. However, growth slowed slightly in the US and Russia, but remained solid. Brazil was the only nation to register a contraction.


JP Morgan Global Composite PMI gives an overview of the global manufacturing and services sectors. It is based on monthly surveys of over 16,00 purchasing executives from 32 of the world's top economies, including the U.S., Japan, Germany, France and China which together account for over 85 percent of global GDP. It reflects changes in global output, employment, new business, backlogs and prices. The Global Composite PMI is seasonally adjusted at the national level to control for varying seasonal patterns in each country and is produced by J.P. Morgan and Markit in association with ISM and the International Federation of Purchasing and supply Management (IFPSM).

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. The J.P. Morgan Global Manufacturing PMI provides advance insight into the global manufacturing and services sectors, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of global markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.

The J.P. Morgan Global Composite PMI data give a detailed look at the manufacturing and services sectors, how busy it is and where things are headed. Since data are pooled from many countries which represent the lion's share of global manufacturing and services output, this indicator provides an advance look at the global private sector economy. Its sub-indexes provide a picture of global output, new orders, prices, employment and backlogs.