Global manufacturing contracted at a moderately deepening pace in June, at a composite 48.8 for an 8 tenth decline to mark the tenth straight month of sub-50 showings.

New orders fell 1.3 points to 48.0 with new export orders down another 2 tenths to 47.1. The latter is a marked rate of contraction in line with a host of national data pointing to slowing underway in cross-border trade.

Output, which had been in the plus 50 column, fell a sharp 2.2 points to 49.2, while expectations of future output fell 2.4 points to a still but less optimistic 59.6.

The plus in today's report is declines in inflation readings: input prices down 9 tenths to 48.4 and selling prices down 6 tenths to 49.2. The latter hint at the success of monetary tightening which in turn hints at its coming conclusion.

Country data have India posting the best PMI score, with China and Japan in the middle, and the Eurozone and specifically Germany near the very bottom.

J.P. Morgan Global Manufacturing PMI gives an overview of the global manufacturing sector. It is based on monthly surveys of over 10,000 purchasing executives from 32 of the world’s leading economies, including the U.S., Japan, Germany, France and China which together account for an estimated 89 percent of global manufacturing output. It reflects changes in global output, employment, new orders and prices. The Global Manufacturing 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 Economics 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 sector, 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 generally 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 Manufacturing PMI data give a detailed look at the manufacturing sector including the pace of manufacturing growth and the direction of growth for this sector. Since the manufacturing sector is a major source of cyclical variability in the economy, this report has a big influence on the markets. In addition, its sub-indexes provide a picture of output, employment, new orders and prices.