| Actual | Previous | |
|---|---|---|
| Index | 49.3 | 48.8 |
Highlights
Global manufacturing activity remains in slight contraction, at a composite index of 49.3 in November to extend a long run of sub-50 results going back to September last year.
New orders, at 48.0, are not signaling any improvement for the months ahead. Output is flat at 49.9 as is employment at 49.2. Yet optimism is intact at 60.1 for future output which is getting a lift from benign inflationary readings, at 52.1 for inputs and 51.0 for outputs.
India and Russia remain at the top of the country breakdown with the US in the middle and Eurozone economies at the bottom.
New orders, at 48.0, are not signaling any improvement for the months ahead. Output is flat at 49.9 as is employment at 49.2. Yet optimism is intact at 60.1 for future output which is getting a lift from benign inflationary readings, at 52.1 for inputs and 51.0 for outputs.
India and Russia remain at the top of the country breakdown with the US in the middle and Eurozone economies at the bottom.
Definition
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).
Description
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.
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.
