At 49.1, the global manufacturing PMI extended its long sub-50 run in September, now at 13 straight months and up only 1 tenth from August. New orders edged 3 tenths higher to 48.4 while new export orders rose 7 tenths to 47.7. Output rose 3 tenths to 49.7 as did future output to 60.7. Employment, however, fell a full point to 49.6 while both input costs and selling prices both rose but remain subdued at 52.5 and 51.6, respectively.

Russia, at 54.5, is at the top of JP Morgan's list with China, at only 50.6, also near the top. European countries crowd the bottom of the list with Germany, at 39.6, at the very bottom. The US, at 49.8, is near the top but still below the breakeven 50 level. In sum, global manufacturing has been and remains stagnant.

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.