| Actual | Previous | |
|---|---|---|
| Index | 50.3 | 50.6 |
Highlights
The global manufacturing PMI held steady in April, at 50.3 versus 50.6 in March and extending a run of marginally positive performances.
New orders at 50.5 and new export orders also at 50.5 point to similar performance for the headline in the months ahead. Output is running slightly higher at 51.5 likely lifted by the working down of backlogs. Employment is steady at 50.0 despite expectations for rising output, at 61.4 though this is down from 62.3 in March.
A negative in the report is rising cost pressures with input prices up a noticeble 1.6 points to 54.0; selling prices are up 3 tenths to 51.5.
Country data once again have India at the very top followed by Brazil and Russia with the US in the middle and Germany at the very bottom.
New orders at 50.5 and new export orders also at 50.5 point to similar performance for the headline in the months ahead. Output is running slightly higher at 51.5 likely lifted by the working down of backlogs. Employment is steady at 50.0 despite expectations for rising output, at 61.4 though this is down from 62.3 in March.
A negative in the report is rising cost pressures with input prices up a noticeble 1.6 points to 54.0; selling prices are up 3 tenths to 51.5.
Country data once again have India at the very top followed by Brazil and Russia with the US in the middle and Germany at the very 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.
