The global manufacturing PMI rose 3 tenths in March to 50.6, its third 50 handle in a row and the best reading since July 2022. New orders, at 50.9 for a 5 tenths gain, are tracking slightly ahead of the headline which is a positive indication for future composite growth. Output is up 7 tenths at 51.9 and employment up 5 tenths to 50.1, both further positives that echo the strength in orders. Price indications cooled slightly at very tame readings of 52.4 for input costs and 51.2 for selling prices.

By region, India leads the gains with the US near the top. At the bottom are the Eurozone and once again at the very bottom is industrial powerhouse Germany. Though the global trend is positive, the rate of improvement is slow. Until Germany kicks in and with it the Eurozone, the global manufacturing recovery will be limited.

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.